SANTA PAULA, CA – Limoneira and The Lewis Group of Companies have formed a multi-million dollar partnership to kick off their new development project, “Harvest at Limoneira,” formerly known as the Santa Paula Gateway Project and East Area 1.

Harvest at Limoneira includes the development of a 500-acre master planned community with approximately 1,500 residential units, according to a press release. Home prices are estimated to range from $300,000 to $750,000.

The development project is expected to provide a significant source of cash flow for Limoneira, bringing the company approximately $100 million over the seven to ten year life of the project, with an additional $20 million to $30 million with each $50,000 increase in the median home price. The median home price in Ventura County currently sits at $516,400.  

Limoneira Lewis Community Builders, LLC is a 50%/50% partnership between Limoneira and The Lewis Group. Upon establishment of the partnership, Limoneira will receive $18 million in addition to the $2 million it previously received from The Lewis Group in September 2015.

Limoneira’s President and CEO Harold Edwards is confident that both companies have the real estate development experience necessary to make this project come to fruition.

“We expect strong demand for Harvest at Limoneira’s new homes to be driven by the development’s highly desirable location that is fourteen miles from the Pacific Ocean and accessible to several major highways and the greater Los Angeles area, as well as the limited supply of new homes throughout Ventura County,” he said.

In a press release, Limoneira stated that it expects to receive 25% to 80% of the net cash flow of the project, based on cash flow milestones provided in the partnership agreement, which is estimated to aggregate approximately 70% of total net cash flows to Limoneira, including the initial $20 million distribution, and the balance of net cash flows to the Lewis Group over the estimated seven to ten year life of the project.

Limoneira Lewis Community Builders anticipates receiving security deposits from homebuilders for lots sales in mid-2017. The sale of lots is expected to begin in the fourth quarter of 2017.

Other than the residential development, Limoneira is also focusing on developing over 40 acres of commercial properties in the area.

“We look forward to strategically reinvesting proceeds from our real estate development projects into our global agribusiness, enabling us to progress on our goal to become one of the leading citrus agribusinesses in the world,” Edwards concluded.

For more on this exciting project from Limoneira Lewis Community Builders, stick to AndNowUKnow.

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