Lamborn Family Vineyards Offering Memorandum

1980 S U M M I T

1984

L A K E

L A M B O R N

D R I V E ,

FA M I LY

A N G W I N

V I N E YA R D S

1980 S U M M I T

1984

L A K E

LAMBORN

D R I V E ,

FA M I LY

A N G W I N

V I N E YA R D S

OFFERED FOR $7,900,000 LAMBORN.COM

L I ST E D BY DA M I A N A RC H B O L D G RO U P

DA M I A N A RC H B O L D

NICK MUCCITELLI

DRE# 00984748 Realtor® 707.339.3550 damian.archbold@compass.com

DRE# 02137193 Realtor® 818.620.6954 nick.muccitelli@compass.com

W I N E R Y D I S T R I C T S A N D AVA ’ S

N A PA VA L L E Y

S I T E M A P + PA R C E L I N F O R M AT I O N L A M B O R N F A M I LY V I N E YA R D S 3 PA R C E L S / 3 3 . 7 9 T O TA L A C R E S

PA R C E L I N F O R M AT I O N PA R C E L 1

A P N # 0 1 8 - 2 0 0 - 0 1 6 , 1 4 .96 A c re s - P r i m a r y Re s i d e n c e , B a r n , C o n c re te Pa d , We l l 1 , P u m p H o u s e & S t o r a g e Ta n k

PA R C E L 2

A P N # 0 1 8 - 1 2 0 - 0 2 1 , 1 1 . 9 9 A c r e s - S t o r a g e Ta n k

PA R C E L 3

APN #018-200-023, 6.84 Acres - Secondar y Residence, Garage, We l l 2 & G a te d E n t ra n c e

N E A R C U LT S TAT U S A B O V E T H E F O G

1

7.9 A c r e s P l a n t e d / 3 3 .7 9 To t a l A c r e s / Po t e n t i a l t o P l a n t 2 A d d i t i o n a l A c r e s

2

C e l e b ra te d , Acc l a i m e d W i n e M a ke r H e i d i B a r r e t t H a s B e e n M a k i n g L F V W i n e fo r 24 years

3

O rg a n i ca l l y Fa r m e d V i n eya rd s w i t h H i g h l y D e s i ra b l e S o i l a n d Fr u i t , O n l y Fo u n d o n t h e H o w e l l M o u n t a i n AVA

4

N o N e e d fo r F r o s t P r o t e c t i o n / A N o - T i l l C o v e r/ C u l t i v a t i o n S y s t e m t h a t Ke e p s S o i l Healthy

5

Tw o h o m e s , O n e B a r n a n d Tw o We l l s o n P r o p e r t y/ H a s Po t e n t i a l fo r a C a v e C o m p l e x B e l ow t h e V i n eya rd s

OFFERING OVERVIEW PROPERTY TYPE: Vineyard & Residential

ZONING: Agricultural Watershed (AW)

ADDRESS: 1980 & 1984 Summit Lake Dr. Angwin,

LAND USE: Commercial Vineyard

CA 94508

LOT SIZE (ACRES): 33.79 Planted (Acres): 7.3

APN: 018-200-016, 018-120-021, 018-200-023

UNPLANTED (ACRES): 26.49

PRIMARY/ SECONDARY HOME STORIES: 2 (Each)

PRIMARY HOME SQ. FT.: 2,630

YEAR BUILT: Primary Home, 1999

SECONDARY HOME SQ. FT.: 2,441

3 Bedrooms/ 2.5 Bathrooms in Primary Home

BARN SQ. FT.: 1,250

YEAR BUILT: Secondary Home, 1987 (Renovated in 2014-2015) 4 Bedrooms/ 3 Bathrooms in Secondary Home Detached Garage at Secondary Home’

BUSINESS OVERVIEW BUSINESS TYPE: Grape Farming

WELL 1 (GALLONS P/M): 28 GPM

GROSS INCOME 2021: $692,005.00

WELL 2 (GALLONS P/M): 75: GPM

TOTAL EXPENSES 2021: $261,600.00

GRAPE VARIETALS: Cabernet Sauvignon/Zinfandel

NET OPERATING INCOME 2021: $532,434.00

AVG. GRAPE YIELD: 6 tons/ acre

MAX PRODUCTION CAPACITY: 1,800 - 2,000 +/-

FARM EQUIPMENT: All

cases per year (7.3 acres)

3232 LAMBORN F A M I LY VD I RN YE YA C RR DESE

K

Lamborn Family Vineyards is located at 2,200 feet above sea level, high atop Napa Valley’s prestigious Howell Mountain appellation. Howell Mountain’s Aiken Loam volcanic soil, combined with its distinct mezzoclimate, provides the 8 acre organic vineyard with ideal growing conditions. This environment produces Howell Mountain Zinfandels and Cabernet Sauvignons of the highest quality and intensity, with all winemaking by Heidi Barrett of Screaming Eagle fame.

T H E STO RY The Lamborn pedigree on Howell Mountain started with Bob Lamborn in the late 1960’s at Outpost Winery. In 1974, Bob’s son Mike, along with his wife Terry, began developing 1984 Summit Lake Drive, where they planted their first vineyard in 1981 - roughly 3 acres of Zinfandel. Over time, an additional two parcels were added to their portfolio. In 1996, Bob retired and Mike and Terry took over operations with their sons Matt and Brian. The famed winemaker Heidi Barrett joined their team in 1997 and, in 1998, they planted their first 3 acres of Cabernet Sauvignon. Fifteen years later, the Lamborn’s began development of another 1.5 acre block of Cabernet, this time dedicated to a specialty Entav French clone. Over the years, the Lamborn brand has focused on building their Direct-toConsumer sales model, which today makes up a majority of their sales.

3232 AN ELITE CLUB D R Y

C R E E K

WINEMAKER, HEIDI BARRETT

Dubbed “The First Lady of Wine” by Robert Parker, Heidi’s reputation as a winemaker is second to none. She is the only winemaker to have achieved consecutive 100 point scores (Screaming Eagle/Dalle Valle) from Parker; and doing it twice. Heidi Barrett remains one of the most sought-after winemakers in the world, thanks to her unparalleled attention to detail, mastery of her craft, and being an allaround wonderful person.

Heidi has been making Lamborn wines since 1997 (24 years).

H O W E L L M O U N TA I N , A B O V E T H E F O G The first sub-appellation of Napa Valley, Howell Mountain remains one of the most prestigious wine regions in the country. Thanks in part to its volcanic soils, elevation, and perfect climate, wines from Howell Mountain rank among the best in the world. Heralded by connoisseurs worldwide, Howell Mountain wines are considered bold, elegant, richly textured, and unique to both mountainous and valley regions.

The Lamborn’s have been farming on Howell Mountain since 1969. Situated at the top of Howell Mountain at 2,200’ in elevation, LFV receives more sunlight than most of the entire Napa Valley.

Being on a mountain peak, our vineyard is not only one of the first to receive the sun’s rays, but one of the last as well. Being above the fogline gives LFV 9-12 hours more sunlight than that of other Napa vineyards in an average week. This directly correlates with higher quality, concentrated berries.

4 T H G E N E R AT I O N F A M I LY W I N E R Y The Lamborn’s run every single aspect of the family winery.

They were the first “Family Vineyard” label in the country, something that has become a trend these days. While there are plenty of “family wineries” that aren’t involved in daily operations, Lamborn is run by Lamborn’s. Four generations have proudly worked this soil, growing the best grapes and producing the highest quality, single vineyard wines.

ABOUT THE FRUIT H O W E L L M O U N TA I N , A B O V E T H E F O G The first sub-appellation of Napa Valley, Howell Mountain remains one of the most prestigious wine regions in the country. Thanks in part to its volcanic soils, elevation, and perfect climate, wines from Howell Mountain rank among the best in the world. Heralded by connoisseurs worldwide, Howell Mountain wines are considered bold, elegant, richly textured, and unique to both mountainous and valley regions.

The Lamborn’s have been farming on Howell Mountain since 1969. Situated at the top of Howell Mountain at 2,200’ in elevation, LFV receives more sunlight than most of the entire Napa Valley.

Being on a mountain peak, our vineyard is not only one of the first to receive the sun’s rays, but one of the last as well. Being above the fogline gives LFV 9-12 hours more sunlight than that of other Napa vineyards in an average week. This directly correlates with higher quality, concentrated berries.

FRUIT HIGHLIGHTS • Organically farmed over the past 4 years but not certified.

• Aiken loam soil series, highly desirable and a staple of the Howell Mountain AVA. • A no-till cover cropping/ cultivation systems keeps soil healthy and helps erosion control.

• No need for frost protection.

• Drip irrigation system.

• Potential to plant two additional acres of vines.

“

Mountain fruit in Napa Valley generally tends to be more wild and brambly than that of its counterpart on the floor, and Howell Mountain is particularly intense and delicious. Every year working with Lamborn Family Vineyards Howell Mountain fruit is special. Their vineyard is situated on a very unique site and the 2,200 foot elevation adds an additional quality element to their grapes.

“

HEIDI BARRETT/ WINEMAKER

RE VENUE – 6 YEAR PRO FORMA SHI PMENTS

201 9A

2020A

2021F

2022P

2023P

2024P

9L Case Sales - Wholesale

383

362

398

626

269

768

9L Case Sales - Retail

1,312

1,320

1,317

1,168

644

1,431

9L SHIPMENT TOTAL

1,695

1,682

1,715

1,794

913

2,199

COMBINED P&L SUMMARY

2019A

2020A

2021F

2022P

2023P

2024P

Sales - Wholesale

$236,030

$181,401

$229,020

$330,996

$168,090

$381,264

Sales - Retail

$770,869

$1,011,075

$1,304,532

$1,235,568

$728,400

$1,421,772

NET SALES

$1,006,899

$1,192,476

$1,533,552

$1,566,564

$896,490

$1,803,036

Total COGS

$433,318

$552,941

$711,095

$726,402

$415,694

$836,052

GROSS MARGIN Case Goods

$573,580

$639,536

4822,457

$840,162

$480,796

$966,984

GROSS MARGIN Case Goods % Net Sales

57%

54%

54%

54%

54%

54%

Misc DTC Income / (Expense)

- $92,737

- $143,114

- $130,453

- $123,557

- $72,840

- $142,177

GROSS MARGIN TOTAL

$480,844

$496,422

$692,005

$716,606

$407,956

$824,807

GROSS MARGIN Total % Net Sales

48%

42%

45%

46%

46%

46%

Sales & Promotional Expenses

$30,163

$26,849

$16,768

$21,809

$19,288

$20,549

Marketing Expenses

$12,078

$16,486

$13,268

$14,877

$14,073

$4,475

Sales & Marketing - Total

$42,241

$43,335

$30,037

$36,686

$33,361

$35,024

DIRECT BRAND CONTRIBUTION

$438,603

$453,087

$661,968

$679,920

$374,595

$789,784

DIRECT BRAND CONT. Total % Net Sales

44%

38%

43%

43%

42%

44%

General & Administration

$109,449

$126,571

$129,535

$128,053

$128,794

$128,423

O PER AT ING INCO M E

$329,155

$326,516

$532,434

$551,867

$245,801

$661,360

OPERATING INCOME Total % Net Sales

33%

27%

35%

35%

27%

37%

Net Interest Expense

$26,748

$23,834

$21,450

$19,305

$17,375

$15,637

Misc Net Income / (Expense)

- $30,202)

- $37,350)

- $15,612

- $26,481

- $21,046

- $23,764

NET I NCO ME B EFO R E FA M I LY E X P E N S ES

$272,205

$265,332

$495,372

$506,081

$207,380

$621,960

Lamborn Family Expenses

$166,134

$130,945

$261,600

$171,273

$191,436

$181,355

NET I NCO ME AF T ER FA M I LY E X P E N S ES

$106,071

$134,387

$233,772

$334,808

$15,944

$440,605

RE VENUE – 6 YEAR PRO FORMA CASE SALES BY YEA R

V 15 / 16 CAB

201 9A

2020A

2021F

2022P

2023P

2024P

WS / DTC

WS / DTC

WS / DTC

WS / DTC

WS / DTC

WS / DTC

20 0 / 4 0 6

V 16 / 17 CAB

189 / 4 05

V 17 / 18 CAB

20 8 / 4 08

V 18/ 19 CAB

228 / 4 26

V 19 / 20 CAB

184 / 344

V 21 / 22 CAB V 15 / 16 ZIN

228 / 426 125 / 652

V 16 / 17 ZIN

118 / 5 65

V 17 / 18 ZIN

13 0 / 65 4

V 18 / 19 ZIN

199 / 371

V 19 / 20 ZIN

85 / 300

V 21 / 22 ZIN V 15 / 16 2200’

341 / 634 58 / 254

V 16 / 17 2200’

5 5 / 3 50

V 17 / 18 2200’

60 / 255

V 18 / 19 2200’

199 / 331

V 19 / 20 2200’

-/-

V 20 / 21 2200’

199 / 371

3 83 / 1 , 31 2

3 62 / 1 , 320

P R I C E /75 0 M L

P R I CE/CASE

CAB

$12 5

$1, 5 00

ZIN

$ 59

$70 8

2 200’ B L END

$ 75

$90 0

398 / 1 , 317

626 / 1 ,16 8

296 / 64 4

76 8 / 1 , 431

RE VENUE – 6 YEAR PRO FORMA CASE SALES BY YEA R

V 17 / 18 CAB

201 9A

2020A

2021F

2022P

2023P

2024P

WS / DTC

WS / DTC

WS / DTC

WS / DTC

WS / DTC

WS / DTC

20 0 / 4 0 6

15 6,0 0 0 / 189 / 4 05

V 18/ 19 CAB

612 ,0 0 0

17 1,000 / 639,0 0 0

V 19 / 20 CAB

138,000 / 516,000 171,000/

V 21 / 22 CAB 4 6,020 /

V 17 / 18 ZIN 125 / 652

V 18 / 19 ZIN

4 62 ,03 2 118 / 5 65

639,000 70, 4 4 6 / 262 , 66 8 30,090 /

V 19 / 20 ZIN

212,400

V 21 / 22 ZIN 27,000 /

V 17 / 18 2200’ V 18 / 19 2200’

120,714 / 448,872

229, 50 0 58 / 254

89, 550 / 5 5 / 3 50

V 19 / 20 2200’

3 3 3,900

-/89,550 /

V 21 / 22 2200’

333,900

201 9A

2020A

2021F

2022P

2023P

2024P

WS / DTC

WS / DTC

WS / DTC

WS / DTC

WS / DTC

WS / DTC

23 6,03 0 /

181,401 / 1,011,075

229,020 /

3 3 0,9 96 /

16 8,0 90 /

381, 26 4 /

1, 3 04 , 53 2

1, 235, 5 6 8

728, 4 00

1, 4 21,7 72

7 70, 8 69

AVER AG E

616. 27 /

501.11 /

575.4 3 /

16 8,0 90 /

624.87 /

496.4 4 /

5 87.5 5

765.97

9 90.53

728, 4 00

1,13 1 .06

9 93.55

H A RVEST + Y I E L DS VA RIETAL

2017

2018

2019

2020

2021

BLOCK 1: ZINFANDEL

12.5 Tons 4.3 Tons per acre

15.44 Tons 5.3 Tons per acre

11.1 Tons 3.8 Tons per acre

-/-

6.4 Tons 18.6 Tons per acre

BLOCK 2: CABERNET SAUVIGNON

10.8 Tons 3.7 Tons per acre

11.17 Tons 4.0 Tons per acre

10.24 Tons 3.5 Tons per acre

-/-

COMING SOON

BLOCK 3: CABERNET SAUVIGNON

4.35 Tons 2.9 Tons per acre

4.68 Tons 3.0 Tons per acre

4.62 Tons 3.0 Tons per acre

-/-

COMING SOON

*1 TON OF GRAPES YIELDS 65 CASES OF WINE *EACH CASE HOLDS 12 - 750 ML BOTTLES OF WINE

PRIMARY RESIDENCE OVERVIEW •

2,630 SQ FT

•

3 BEDROOMS / 2.5 BATHROOMS.

•

BEAUTIFUL GREAT ROOM WITH MEDITERRANEAN FLOORPLAN

•

WRAP AROUND DECK WITH 360 DEGREE VIEWS OF THE VALLEY FLOOR AND AVA

•

BOCCE BALL COURT AND GARDENS

•

CENTRAL AIR AND HEAT RECENTLY INSTALLED

•

BUILT IN 1999

SECONDARY RESIDENCE OVERVIEW •

2,441 SQ FT

•

MAIN LEVEL – 3 BEDROOMS / 2 BATHROOMS

•

LOWER LEVEL – 1 BEDROOM / 1 BATHROOM

•

REMODELED 2014 - 2015

•

BUILT IN 1987

E QUIPMENT L I ST Kubota tractors: One with a bucket loader, fork

2

lift attachment and box scraper Chipper

1

Wood splitter

1

Harvest trailers

2

Eight (8) kw generators

2

Eight (8) Foot utility trailer

1

Eighteen (18) Foot flatbed trailer

1

2020 Ford F-350 Super Cab flatbed truck

1

Forklift

1

Kubota 4x4 RTV w/dump bed

1

Honda 4x4

1

Honda 2x4

1

Other: Chain saws, weed eaters, blowers, trimmers, and various hand tools.

B LO C KS , RO OTSTO C KS , C LO N E S • Zinfandel 1981 Wente clone planted on AXR-1 • Zinfandel interplant 1998 Deaver Clone on St. George • Cabernet 2001 All planted on 101-14 roots, the fruit clone is split 50/50 07 & 337 • Cabernet 2014 ( Matt’s parcel ) 101-14 roots, clone 169 Crop Care performed isolated plant tissue analysis in 2019 in the Zinfandel. They identified a few vines with virus which we removed.

CURRENT VENDORS + SERVICE PROVIDERS Chemicals Labor

Napa Valley Ag Supply, Wilbur Ellis, St. Helena Mario Bazan Vineyard Management

Supplies

Central Valley Builders Supply

Propane

Napa Valley Petroleum

Parts, Service, Repair Electric

Green Valley Tractor PG&E

1980 S U M M I T

L A K E

1984 D R I V E ,

A N G W I N

L A M B O R N F A M I LY V I N E YA R D S

LAMBORN.COM

DA M I A N A RC H B O L D DRE# 00984748 Realtor® 707.339.3550 damian.archbold@compass.com

NICK MUCCITELLI DRE# 02137193 Realtor® 818.620.6954 nick.muccitelli@compass.com

This Offering Memorandum contains information that is privileged and confidential. Buyer must verify accuracy of all data & information pertaining to entire offering memorandum. If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of the contents of this information is prohibited. If you have received this Offering Memorandum in error, please notify Damian Archbold or Nick Muccitelli immediately by email at: damian.archbold@compass.com or nick. muccitelli@compass.com.