Limoneira Co. Announces Sale of Paso Robles Vineyards for $15M

What Happened

• Limoneira Company (through subsidiary Windfall Investors, LLC) announced on August 15, 2026 that it entered a Purchase and Sale Agreement to sell five vineyard properties in Paso Robles (approximately 724 acres) to buyer Paul Rusnak (and permitted assigns) for an aggregate purchase price of $15,000,000. The sale followed a public auction conducted by Concierge Auctions, LLC and the agreement calls for closing no later than September 14, 2026. Limoneira issued a press release on August 17, 2026 announcing the transaction.
• The buyer paid an earnest money deposit equal to 12% of the purchase price (nonrefundable except for a material seller default). The transaction is not conditioned on buyer financing or further due diligence. The buyer excluded the 2026 harvest from the sale: the 2026 crop and growing crops remain the seller’s property, and Limoneira retains related revenues and farming/harvest access through November 30, 2026. The properties will be conveyed “as is, where is.”

Key Details

• Purchase price: $15,000,000 for ~724 acres across five Paso Robles vineyard properties.
• Earnest money: 12% of purchase price (becomes nonrefundable except for seller material default).
• Closing: scheduled no later than September 14, 2026; buyer not required to obtain financing.
• Accounting impact: Limoneira now expects an additional impairment of ~ $4.1 million in Q4 FY2026, bringing the aggregate FY2026 impairment related to these assets to approximately $13.4 million.

Why It Matters

• The sale is part of Limoneira’s strategy to monetize non-core real estate and improve liquidity; proceeds of $15M will affect the company’s cash position once the transaction closes.
• Investors should note the material accounting impact: an expected aggregate impairment of about $13.4M in FY2026 will reduce reported earnings for the year (previously disclosed ~$9.3M in Q2 plus the new ~$4.1M).
• The deal’s “as is” terms, limited seller representations and relatively low seller liability caps (seller liability generally subject to a $25,000 threshold and capped at 3% of the purchase price) mean reduced post-close protection for Limoneira, while buyer protections include a broad release of claims. The exclusion of the 2026 harvest preserves near-term crop revenue for the seller through Nov. 30, 2026.