Looking ahead, here are the insider insights you need to know about winery and vineyard sales on California's Central Coast and beyond.
Big Picture
- Wine country real estate continues to command exceptionally high prices and marquee California wineries are attracting high earnings multiples.
- The most sought-after wine properties are those with a compelling location and mix of assets, including a premium vineyard and strong retail location.
- The overall market will remain vibrant and realistic sellers will be successful. The wine industry is complex and highly fragmented with many brands and a diversity of owners from large public companies to small private operations. Multigenerational families coexist with legacy brands and newcomers to the wine industry from elsewhere. Together, this variety helps create a stable market for winery and vineyard properties.
Regional Highlights
- Highly desirable, expect continued focus on Paso Robles with a premium for Westside property.
- A production focus generates strong ROI across Paso’s Eastside districts.
- There's a continuingly narrow supply of land suitable for high-end wine production.
Buyers
Professional & Institutional Investors
With winery and vineyard prices remaining at elevated levels, buyers need capital. This means professional and institutional investors, as well as individuals with deep pockets from other sources.
European Buyers
There continues to be strong interest from European buyers, particularly those already in the wine business. For Europeans facing increased political and economic instability, the wine business remains an attractive option, particularly because California real estate has historically been a wise investment. Adding all these types of buyers together means there’s a relatively large pool of prospects for any well-positioned deal.
In 2022, Jenny Heinzen effectively represented a German buyer who invested in Zenaida Winery with Highway 46 frontage. This year she's prepared to continue guiding buyers from both the United States and abroad.
What to Expect
Expect booming deals for valuable hard assets: wineries and vineyards with good location, wineries with use permits that allow for greater than average events and visitation, and well-equipped production facilities.
Sellers
Family & Legacy Wineries
Family-run and legacy wineries dominate recent sellers, with fewer institutional investors entering the market. After watching the recent long bull market, many family groups have determined this is a good time to make an exit, prior to any market-wide corrections in asset values. Second or third generation owners may have determined it’s in the family’s best interest to avoid possible infighting and depart at a market high. First generation owners may have come to the conclusion that, without clear succession candidates, their heirs are better off inheriting cash than an operating family business. Plus, the high values achieved in recent deals may have convinced some owners that there’s no time like the present. Successful sellers know what they have to offer and market accordingly.
Motivated to buy or sell vineyard real estate?
California's #1 vineyard broker, Jenny Heinzen is the trusted agent for wine industry clients, investment funds, and high-net-worth individuals. Equipped with over two decades of insider expertise and $250+ million in closed real estate transactions, count on Jenny to achieve your most ambitious goals.
Contact Jenny at (805) 260-0581 or email [email protected].
