Posted on 12/03/2012 9:02:01 AM PST by Uncle Chip
It was only a matter of time before a cash-flush investor bought the Broken O Ranch. Asking $132.5 million in cold hard cash, the 124,000 acre Montana farm is one of the largest agricultural operations in the Rocky Mountain West, offering an alluring investment opportunity to those bullish on soft commodities. Turns out one American billionaire agrees.
Stanley Kroenke, a real estate mogul worth $4 billion by Forbes’ estimate, assumed ownership of Broken O Ranch on Tuesday for an undisclosed price. Kroenke, known for his ownership of sports teams like the NBA’s Denver Nuggets and the NFL’s St. Louis Rams, is believed to have plunked down nine figures for the property, according to people familiar with the deal.
“Bill Moore obviously had the vision, expertise and wherewithal to assemble one of the finest cattle and farming operations in the United States. Mr. Kroenke looks forward to building on that incredible legacy,” said Sam Connolly, general manager of Kroenke Ranches, in a statement.
Prior to this purchase, Kroenke’s personal portfolio held an estimated 740,000 acres’ worth of U.S. real estate, making him the 10th largest landowner in America, according to the Land Report. With the addition of Broken O’s 124,000 acres, he is now the eighth largest in the country, eclipsing the Reed and Pingree families’ land holdings. At 864,000 acres, his holdings still trail million-plus-acre owners like John Malone, Brad Kelley and Ted Turner.
The ranch was created by William and Desiree Moore, the late founders of the Kelly-Moore Paint Company. This is the first time it has ever changed hands. ”We are pleased that the Broken O will be in the hands of a new owner of Stan Kroenke’s caliber and commitment to agriculture,” stated the Moore family, following the sale.
(Excerpt) Read more at forbes.com ...
If he paid $50 million, I’ll eat my hat.
As a Texan I have always said if I could find a way to make a good living so I could own land I would move to Montana tomorrow. My wife always sabotages that idea.
So I just go there every chance I get (usually hunting) along with western Colorado and Wyoming.
I hope he was smart enough to get the mineral rights with that ranch.
Forgive my ignorance, I'm trapped in the northeast.
Pretty soon they state of Montana will belong to billionaires and the federal government.
And I’ll bet your wife doesn’t have the money that Mrs Kroenke has either. LOL! I wonder if Mrs. Kroenke (nee Walton as in Walmart) is the one that donated to the uncle obie campaign. I’m also pretty sure your wife DIDN’T donate to the uncle obie campaign. Just sayin’.
Share the lead.
If by "pretty soon" you mean NOW, then I agree. :)
I thought that was Montana's purpose now.
I’m sure that he got a TIF discount before buying it.
Depends on location, as always. Average small parcel with water and power is running about $10K an acre. Further out, less. Still can find decent land for $5K, the bigger the parcel, the price becomes less per acre.
Around Kalispell and Flat Head Lake, the Californicators are paying a premium for being able to be cold and complain about hunting. Trust fund babies trying to turn Big Sky into another California. Natives are not too pleased with that.
Gunner
It is not so much the cost as the location. Raw farm land here is still reasonable the further you get away from civilization. Just as anywhere though to own big land you have to have made your fortune or inherit it (then worry about the taxes) neither of which I will reap. As a younger man I was able to do some real cowboying on some big ranch, man what a life, hard, but fun.
It is almost impossible nowadays to start a large ranching/farming operation from scratch without having loads of capital because the return is marginal, outside the lifestyle.
Take example central Texas, buying any land within 2 hours of San Antonio or Austin you will pay double or triple for the land (demand is skyrocketing) and within 10 years be surrounded by new “ranchette” housing neighborhoods. Just ask the folks in the Leander, Taylor, Liberty Hill, New Braunfels, Boerne, Seguin, Hondo areas - and the list goes on. People bought there 10-15 years ago were moving to the country. Not anymore.
Family land owners in that areas that did hold out can no longer resist the temptation to sell based on the price they can get and the fact they are now in the burbs.
Sucks to see that. Other than Alaska no other place to run now.
And that doesn’t count the landed ownd by the states and counties.
As a dweller in the Leander / Liberty Hill area, I agree.
Although we aren't 'citified' in our immediate area, the growth over the last 10 years has been phenomenal. Within a 12 mile radius, we've had 8 major housing developments, 4 mega-acre shopping centers, 2 hospitals and uncounted retirement homes spring up.
We're just hanging out here for a few more years so we can sell our (relatively paltry) 4 acre lot for enough scratch to move back.........to the country!
LOL!
And that doesn’t count the land owned by the states and counties.
“We’re just hanging out here for a few more years so we can sell our (relatively paltry) 4 acre lot for enough scratch to move back.........to the country!”
So where is the “country” now? I want to move to TX.
I am far enough out and away that I will be fine. The county I have land in has 22% unemployment. With mean income being about $22.5K. The folks stay and live off of the land. Besides, I am old, so will not have to see the demise of this country I love so dearly.
Gunner
Wow—big post. I grew up in Oregon, and wasn’t aware that it wasn’t as bad in other western states—I thought it “normal” for the feds to own more than half the land, and am mildly pleased that only five states share that distinction, with Idaho barely making the list. Montana at less than 30% is in relatively good shape. The states ought to be able to tax federal land. If it means that much to the yahoos in New England to own a share in our resources without us owning a share in theirs, let them pay their share.
Sadly, I am in the mid range where I may see it but then be too old to contribute much, as far as grunt work goes. We moved from rural area to a burb a few years back for better $ in our jobs. Was it a mistake, time will tell, there are trade offs.
I have 5 children that will live it. I apologize to them frequently and try to tell them how to prepare for it.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.