If you are thinking you would love to own a vineyard property, you are not alone. There are lots of people in the Bay Area and beyond who harbor a dream of buying a vineyard estate or even buying their own winery. But how do you begin to think about the type of vineyard property you want to purchase? As the one end of the scale is a residential property that happens to have some planted vineyard all the way up to buying an established vineyard and winery.
As you might expect the price has a wide range from a couple of million to $20m and upwards. Before you even get into looking at your options it is important to think about the overall goal and the lifestyle you are looking to buy into. There are some clients who are passive investors and want to purchase a property and take on a team to do everything from farming to winemaking to hosting guests at the property, but there are other people who have dreamt of getting their hands dirty having had a successful career in business and getting down to farming! Depending on what your goals are will inevitably guide your decisions on where and what to purchase.
If we think about buying a vineyard property we can put the options into six broad categories:
- A vineyard with a site to build a home
- A luxury vineyard residence
- A boutique vineyard estate
- A historic vineyard estate
- A sustainable vineyard and winery
- An investment opportunity
A Vineyard Home Site
Many people who have a dream of building a home in Sonoma County also like the idea of having vineyards, partly for aesthetic reasons but sometimes to enable them to try their hand at a hobby vineyard. In this case, it is the location and setting that is most likely the most important criteria because the goal is to end up with a residence first and foremost and have a vineyard as a side benefit.
If this is what you are looking for there are options all over Sonoma County from the most eastern parts bordering Napa all the way out to the coast. One of the criteria, if you are buying a piece of land to build your home, will be to choose a location that will support the value of the property you are building. It may be that you find the building site but then have to plant vineyards to create the ultimate dream or it may be that you find a piece of land with a vineyard already planted that is being sold as a site for an estate home.
There are lots of examples of these types of properties for sale such as the properties in a place called Hall Ranch which is a gated vineyard community that has been created with 4 or 5 different lots for sale, each of them about 40 acres and each with a few acres of planted vineyard. 577 Artisan Circle in Healdsburg is one of the lots that is 40 acres with 9 acres of planted Cabernet Sauvignon. All of them have a well and have approved septic per tests to support estate homes. If you want to know more about the process of putting in a septic system check out this blog post.
The alternative is to purchase a home site where you plant a vineyard and develop it from scratch. There are plenty of examples of where people do this. For example, we are selling 2476 Wright Ranch Lane in the Chalk Hill AVA which is 50 acres and yet could easily support the planting of a couple of acres.
A Luxury Vineyard Residence
The other option is to find an estate home that has a planted vineyard. Again there are lots of different options. These estates combine opulent living spaces with meticulously maintained vineyards, providing the ultimate retreat for wine enthusiasts. Every now and again you will find a home with picture panoramic views, state-of-the-art amenities, and the convenience of being able to harvest your fruit to create your own wine right on your doorstep. For example, there is a home that is going to be coming on the market in Dry Creek Valley that is a super modern home with an infinity pool and a separate studio looking out over vineyards. The owners have just completed building the home but since they embarked on the journey have moved to Bend and so they are selling it for upwards of $5m.
Photo credits to historicsonomavineyard.com
Of course, there are plenty of options for homes that were built in the 1900s and even in the 1800s that are vineyard estates with all the amenities you would expect. For example, this property, priced at just under $10m, is located at the western base of the Mayacamas Mountains. Surrounded by gorgeous farmland and the area's most acclaimed wineries, it is located just one hour north of San Francisco and only 10 minutes from the downtown Sonoma Plaza. The property features several buildings including a nearly 6,000 sqft Victorian home alongside the vineyard planted in the 1890's as a Zinfandel field blend, this vineyard estate offers an unparalleled opportunity to own a piece of California's rich winemaking history. The estate also boasts a gorgeous outdoor pool and patio area, a fire pit, and several areas perfect for hosting intimate gatherings or large events. This is definitely a great compound for a family.
Photo credits to historicsonomavineyard.com
A Boutique Vineyard Estate
You may be looking for somewhere you can live but which you can also operate as a boutique winery either because you have the experience for it or else you are sufficiently curious to want to start a new business in a field you are passionate about. There is no question that a boutique vineyard estates epitomize exclusivity and craftsmanship. With limited production, these estates focus on cultivating premium grapes and crafting exceptional wines and hope that they can command the premium price per bottle. The allure for many people lies in the attention to detail and the opportunity to connect intimately with the winemaking process. Imagine owning a property where every vine is nurtured with care, resulting in wines that reflect the terroir and the vintner's expertise. This is not for the feint-hearted and clearly requires deep pockets with no guarantee of success.
Bellisimo Vineyard in Knights Valley is one of the larger boutique wineries and is a great example. Located in its own verdant valley within Knights Valley AVA, the Bellisimo Vineyard contains 50.35 planted acres of the total 65.74 +/- acre Bellisimo Vineyard, and is planted in Cabernet Sauvignon and Chardonnay vines. Also included in the sale for the $9.7m asking price are four separate residences totaling 7,088 +/- square feet, offering ample room for employee housing or continued rental income from 3rd party leases. Having the additional housing, for some people, is a key requirement because it gives opportunities for additional rental income but more practically it enables the owner to provide housing for the vineyard manager or wine maker which is increasingly hard to find for people in the winemaking and hospitality industries.
Historic Vineyard Estates
Steeped in history and tradition, historic vineyard estates transport you to a bygone era. These properties often boast charming architectural details and storied pasts that add to their allure. Owning a historic vineyard estate means becoming a steward of the land's legacy, preserving its character while embracing modern winemaking techniques. For some people preserving that heritage is the attraction.
These opportunities only come by once in a while and unfortunately these purchases tend to be made by the big groups such as E & J Gallo. For example a few years ago, Asti Winery, one of Sonoma County's oldest and largest wineries, located in the northern part of the Alexander Valley and which was established in 1881 by Italian immigrant Andrea Sbarboro was purchased by Gallo. Known then as Italian Swiss Colony, Asti Winery was communally owned by many local families, producing a variety of wines from numerous local vineyards. Today, the Asti Winery spans more than 500 acres with a winery facility capable of crushing 35,000 tons of grapes. The vineyards alone at approximately $80,000 - $100,000 per acre would be valued somewhere in the region of $25 to $30m before a value was put on the wine making facilities and the various structures, tasting room and residences on the property.
A Sustainable Vineyard and Winery
As sustainability takes center stage, modern sustainable vineyards showcase the marriage of innovation and eco-consciousness are definitely an area for both investment and purchase for many people looking to buy into the wine business. These estates implement practices that prioritize the environment while producing exceptional grapes. Solar energy, water conservation, and biodiversity enhancement are just a few of the elements that make these properties a responsible choice for the future.
Quivira, which built its reputation around sustainability, was recently put on the market for $25m. Located half way down Dry Creek Valley it is nestled on 85 picturesque acres, has a 25,000 case winery permit and open to the public testings permit which are valuable assets in their own right. Its focus on biological diversity and bio-diversity which perpetuates a life cycle that attracts wild animals, birds, insects and plants are all an integral part of its commitment to being a sustainable farm. For example it also has a 55kw solar installation, a half-acre compost pile it self manages and is innovating with water conservation. All of these are key elements in creating a sustainable winery and vineyard that helps offset the damage of monoculture.
Investment Opportunities
Vineyard properties in Sonoma County offer not only a chance to buy your own wine label but also create your own. For example a friend of mine purchased a property on Dry Creek Road a few years ago and has been systematically been re-planting all the vines, building a wine storage facility and has plans to ultimate produce their own wine label. Having seen his journey I can safefly say this is definitely a labor of love and one which shouldn't be undertaken lightly. With the rising demand for premium wines, these estates can yield returns not just through the appreciation of the land but also through the wines they produce. For the right person it's an opportunity to blend passion with profitability.
Depending on what your ultimate goal is you can buy a piece of land and start from scratch or you can purchase a fledgling operation. If your ultimate goal is to start a wine label and have a tasting room on the property this will dictate the type of property you purchase because the ability to make wine onsite and have a tasting room are two permits which are hard to come by. That's why finding a property that already has a use permit for winemaking or a tasting room, even if it isn't used, is a really value thing to have. For example, there is a property that is going to be coming on the market on West Dry Creek for about $6m that has a house that is a 4 bed 2 bath farmhouse, However it also has a winery and tasting room that is brand new as well as a permit although it has never been used as such. The permit allows an annual production of 10,000 cases a year max with public tasting 7 days a week. It includes 8 industry wine events and 24 special events with a max of 60 people which is among the most generous permit you can get.
In Summary
If you are looking to buy anything from an estate home site with a vineyard all the way up to a fully functioning winery, there are a lot of considerations to take in along the way. As with any purchases, it's key to have a clear vision of the finished property or business. If you are just buying a house it is relative simple to do your due diligence by getting a home inspection, pest inspection and roof inspection but buying a piece of land to build, a vineyard or a winery is a different proposition. If you are looking to build an estate home you will need to make sure you understand the situation with the septic and the soils. If you are purchasing a vineyard you will need to do an analysis on the vines and the soils to determine their health as well as understand how they have been farmed and their annual production and quality. If you are buying an existing winery, it is important to understand the KPIs and the health of the wine club membership alongside key metrics such as customer lifetime values which vary hugely from winery to winery. I have lots of clients and friends who have embarked on this journey and would be happy to help you navigate through the various obstacles and opportunities.