Broken O Ranch Sale Named 2012 Land Report Deal of the Year

Page through each issue of The Land Report in 2012, and three trends stand out:

1) Legacy properties continue to command a premium. Witness Larry Ellison’s mega-million-dollar purchase of the island of Lanai.

2) The market continues to crave income-producing properties, especially productive farmland.

3) America’s leading landowners view stewardship as a critical element of their trust. Witness Louis Moore Bacon’s remarkable conservation gift, which led to the creation of the Sangre de Cristo Conservation Area.

One transaction encompassed all three of these elements: the sale of Montana’s historic Broken O Ranch. The history of the Broken O predates statehood. Its legacy is peerless. And its capacity to produce cattle and prodigious amounts of grain is matchless. When these 124,000 acres changed hands in November, one passionate, innovative business- man assumed an imposing mantle that had been meticulously crafted by a peer from an earlier era. For these and so many other reasons, the Magazine of the American Landowner is proud to designate the sale of the Broken O as the 2012 Deal of the Year.

Located along a 20-mile stretch of the Sun River, the roots of the Broken O reach deep — to the days of the Montana Territory. Its current incarnation was masterminded by Bill Moore, founder of the country’s largest privately owned paint company, Kelly-Moore. What began in the 1980s with Moore’s acquisition of a single ranch property along the Sun River evolved into what Forbes described as “one of the largest agricultural operations in the Rocky Mountain West.”

The Broken O’s new owner — Stan Kroenke — is no stranger to the land either. Kroenke ranked No. 10 on the 2012 Land Report 100; among his other ranch holdings is the largest contiguous ranch in the Rocky Mountains, the 540,000-acre Q Creek Ranch.

“Stan looks for quality,” says Kroenke’s broker, Joel Leadbetter of Hall and Hall. “The Broken O is so diversified with agricultural and recreational opportunities, and it’s such a large continuous landscape. That’s rare these days. The Broken O also complements and enhances the attributes of Stan’s other ranches and their operations.”

The rich and alluring history of the Broken O Ranch dates back to the 1800s, a time when cattlemen of the Lonesome Dove era ventured west to tame vast sprawling landscapes. One of those intrepid hopefuls was Daniel Flowerree, a Missourian who made his fortune in Montana’s gold fields. After settling in the Sun River Valley, his Flowerree and Lowry Cattle Company boomed, running as many as 40,000 head. Then a series of brutal winters took a bitter toll.

Shortly after the turn of the twentieth century, Flowerree’s ranch was acquired by the Teton Land Company. In the decades that followed, the operation eventually grew into one of the largest cattle operations in the West. In 1945, John Hamilton of Hamilton Beach appliances purchased it.

Bill and Desiree Moore bought the Hamilton Ranch in 1988. One of Moore’s next acquisitions was a neighboring tract, the Freeman Ranch. He would forge a deep, long-lasting bond with the family. Dan Freeman became a close friend and Bill’s right-hand man.

Over the ensuing two-decade span, Bill Moore and Dan Freeman worked in concert, assembling more than 20 blocks of land and building the enormously successful ranching and agricultural enterprise that is in place today.

“As his ranch manager for more than 20 years, Dan brought Bill’s dreams and his passions to fruition. It was a rare combination,” says Mike Swan, the seller’s broker. Swan, who was affiliated with the leading firm of Bates Sanders Swan Land Company throughout the marketing and sale of the Broken O, announced the formation of Swan Land Company in February 2013.

The Broken O is its own hedge fund,” Swan says. “Production is at such a massive scale that any one of the individual entities could make a tremendous agricultural operation independently.”

In addition, the Broken O features a matchless recreational component. Twenty miles of Sun River create an immense resource not only for fish but also for waterfowl, upland birds, mule deer, and elk. Thanks to the Sun River and other historic rights that date back more than a century, the Broken O is the largest private water rights owner in the State of Montana.

The ranch also enjoys close proximity to “the Bob.” At more than 1.5 million acres, the renowned Bob Marshall Wilderness is one of the largest wilderness areas in the Lower 48.

Along with building an agricultural empire, Moore also built a reputation as a steward of the land. He improved the ranch’s extensive pastures by planting native grasses. Moore placed three conservation easements on approximately 9,700 acres along the Sun River corridor. The Moores eventually became a mainstay of the community, employing a large number of locals, funding a community center in nearby Augusta, and donating to local schools and charities.

Kroenke is also no stranger to land stewardship. “Stan bought his first ranch in 1997, and balance has always been important to him,” Leadbetter says. “He looks at everything: the business, ecosystem, fishery, wildlife, and landscape. He always strives to be a very good steward while running sustainable ag operations.”

A deal of this size requires a tremendous amount of preparation. Swan spent months working with Freeman and the seller’s legal team to prepare volumes of due diligence material, including inventory lists, equipment and cattle documentation, background information on 27 houses, soil reports, land title commitments in three counties, information about water rights, state and federal land leases, grazing permits, gravel permits, DEQ permits, conservation easements, and hunting leases, to name a few.

“The preparation was instrumental to the successful transaction,” Swan says. “Our goal was to package the ranch to the point that when the buyer came through the door, everything they needed to know about the Broken O was at their fingertips.”

And interested buyers did come knocking, including private investors and investment funds as well as corporate entities.

As luck would have it, Leadbetter and Swan are both based out of Bozeman; the two know each other quite well. “We both grew up on ranches in Southwest Montana and have ag backgrounds,” Swan says. “We were working with a buyer and a team that understood the materials we provided and spoke the same language. That was paramount to the transaction.”

Of equal importance was that Leadbetter’s client instantly recognized the sterling qualities of the Broken O. “Stan looked it over, and he knew he wanted it,” Leadbetter says. “He’s that kind of guy — very bright — and wants to continue that legacy of innovative agriculture and enjoy the wildlife and fishing and all that the Broken O has to offer.”

An especially rewarding aspect only became apparent after the closing. The central character was not present, but his legacy continues. “It is a blessing we were able to sell the ranch to an individual of Stan Kroenke’s commitment to agriculture and land stewardship. My sense is that this transition will not only see a continued commitment to the current agricultural operation that William Moore established, but a continual enhancement and improvement of the ranch overall. I’m sure if Bill Moore were alive today, he would be pleased.” Swan says.

Enjoy the entire issue HERE.

Sold! Montana’s Broken O Ranch

The 124,000-acre Broken O Ranch, one of the most expansive and versatile agricultural operations in the Rocky Mountain West, has been purchased by American business entrepreneur Stan Kroenke. The Moore family has spent nearly 25 years assembling this massive land holding. Spread across Lewis & Clark, Cascade and Teton Counties along the Sun River near Augusta, Montana, the Broken O was carefully shaped and improved to create one of the most grand and significant agricultural enterprises in the United States.

Kroenke, a respected land steward, also owns Cedar Creek Ranch and PV Ranch both located in Montana, and ranches in Wyoming, Arizona and British Columbia. Terms of the sale were not disclosed. Mike Swan of Bates Sanders Swan Land Company represented the Sellers and Joel Leadbetter of Hall and Hall represented the Buyer in this landmark transaction.

Situated along the eastern edge of the stunning Rocky Mountain Front – the Broken O is one of the West’s most grand and significant ranches. More than 20 miles of the Sun River course through the heart of the substantial Broken O Ranch offering abundant recreational and hunting amenities.

The Broken O currently irrigates in excess of 13,000 acres,  the largest acreage of irrigated farm land in Montana. The Ranch runs 3,500 mother cows, 800 replacement heifers and 175 range bulls. It produces 25,000 tons of alfalfa hay and 700,000 bushels of small-grain crops annually. It also contains a 5,000 head commercial feedlot.

For more information on the Broken O Ranch, visit TheBrokenORanch.com.

 

For Sale: Montana’s Running Colter Ranch

“With an incredible abundance of trout, birds and game, the Running Colter Ranch represents the finest spring creek trout fishing, waterfowl and upland bird hunting in Montana. The availability of private scenic building sites, agricultural and conservation potential, Running Colter presents an opportunity that is not to be missed.” – Live Water Properties’ Montana Managing Broker and longtime resident of Bozeman, Craig Janssen.

Located in Belgrade, Montana, Running Colter Ranch presents a rare opportunity to own one of the finest spring creek trout fishing, waterfowl and upland bird hunting properties in Montana. Comprised of two separate parcels totaling 696± acres, this ranch features 3/4 mile of excellent spring creek fishing on Bull Run Creek or “cast and blast” the private waterfowl ponds and sloughs. Additionally, virtually all of the waterways on the property have been expertly enhanced to maximize an incoming owner’s outdoor recreation; the wetlands and creeks on the property are enrolled in an enhancement mitigation bank (check with the listing broker for full details).

Present ownership has managed Running Colter primarily to promote wildlife habitat and property health. A neighboring rancher currently leases the crop and hay grounds for production. To maximize the game bird and wildlife habitat, no grazing has been utilized. Running Colter has ample water to irrigate the 264 acres that are currently being farmed, with a diversity of sources within the irrigation rights. This property is extremely well watered for agricultural purposes with the benefits of increased quality in the wildlife habitat.

Running Colter Ranch is home to an incredible diversity of game and non-game birds, along with plentiful wildlife. Whitetail deer, pheasants and many types of waterfowl are found in abundance. Hungarian Partridge, dove, moose and black bear are not uncommon. The number and variety of songbirds that can be seen at the bird feeders off the back porch are incredible.

The hunting dogs will be eager to work for game birds along the many water features of Running Colter Ranch. The waters of Bull Run Creek have been enhanced for both trout and waterfowl. The grain fields lining the creek allow for excellent feed and cover close to the water sources. Bull Run Creek is one of the hidden angling gems in the Gallatin Valley, offering great spring creek opportunities for the fly fisherman. The springs and water expressions provide the warm groundwater needed to allow for cold weather waterfowl opportunities.

Running Colter Ranch is being offered for sale in its entirety for $6,475,000, with the potential to purchase either of the two smaller parcels listed below, by Live Water Properties.
Northern Parcel (Lot 1): 252± acres for $3,000,000
Southern Parcel (Lot 2): 441± acres for $3,750,000

For more information on Running Colter Ranch, contact Live Water Properties at (866) 734-6100 or info@livewaterproperties.com. You may also contact the brokers directly: Craig Janssen at (406) 580-5830 and Jack McInerney at (406) 220-1696.

Hunting and Fishing Numbers End Decades-Long Decline

The U.S. Fish & Wildlife Service’s 2011 National Survey of Fishing, Hunting, and Wildlife-Associated Recreation indicates that the number of hunters increased by 9 percent nationwide from the previous survey in 2006. Angler numbers grew by 11 percent. All told, more than one-third of all Americans participated in wildlife-related recreation in 2011, an increase of 2.6 million participants. Their $145 billion in expenditures represents 1 percent of the nation’s gross domestic product (GDP) and includes licenses, tags, gear, travel costs, land leases, and land ownership.

Read more here.

Download the October newsletter here.

Land Report October 2012 Newsletter

A conservation easement leads to our country’s newest conservation area.

Productive ag land sets a new auction high.

A major bump in U.S. hunting and fishing numbers.

These are a few of the featured items in our October 2012 newsletter, which is now available HERE.

From coast to coast, interest in land and land-based assets continues to rise. See so for yourself as we present new listings, new sales data, and auction updates.

For up-to-the minute reports on listings, auctions, sales, and breaking news pertaining to land and landowners, be sure to follow us on Facebook, Twitter, and Pinterest.

For Sale: Arkansas’s Prairie Wings Duck Club

Dating back to 1948, Prairie Wings Duck Club in Jefferson County, Arkansas is one of America’s best, private hunting clubs, offering, green-timber mallard duck hunting, along with impressive whitetail deer hunting.

Adjoining the Bayou Meto Wildlife Management Area and other properties intensively managed for waterfowl and whitetail deer, Prairie Wings Duck Club consists of 1,650± total acres, including 1,130± acres of impounded, mature hardwood timber; 464± acres that are cultivated for rice and soybeans; and 56± acres including the lodge and equipment storage sites, levees, bayous, and roads.

The flooded timber offers six (6) beautiful shooting holes, which some of them have been the inspiration for a few paintings by nationally acclaimed wildlife artists. The timber is a mixed species oaks, which has been well managed over the previous century. There are five (5) wells and five (5) relifts for watering and dewatering the two large green-timber impoundments.

The cultivated acreage strategically rests around the perimeter of the impounded timber and offers sanctuary and feed for the wintering waterfowl. All of the cultivated acreage is managed in a rotation of rice and soybeans providing excellent habitat for resting and wintering waterfowl. The farmland acreage is 100% irrigated and all precision leveled for efficient water management. A professional farmer is in place and the property is farmed on a crop-share basis.

The charming Prairie Wings lodge rests on the banks of Fish Lake Ditch and is abundant and widespread over a single level intertwining structure that is as dated as its prominent history. The lodge is designed to accommodate large groups of shooting sportsmen in warm comfort and includes six (6) master suites, nine (9) guest bedrooms, a guide’s quarters, and abundant bathrooms. The kitchen and dining room are fully equipped to service all the culinary needs of the lodge. A huge deck with fire pit is adjacent to the lodge positioned on Fish Lake Ditch. The exterior features cypress of the local bottomlands. Equipment storage and dog kennels is located just away from the lodge.

This property has been commercially hunted for ducks since the mid-1990s. Records show an average success of over 2,500 harvested ducks per year.

Listed with Lile Real Estate, Inc., Prairie Wings Duck Club is available for $15 million. For more information, contact Gar Lile at (501) 374-3411 (office) or (501) 920-7015 (mobile).

Insider Insight: Patience Is Key

The value of patience was clearly evident in a recent transaction involving the sale of a 5,200-acre ranch near Hall, Montana. Fay Ranches represented the seller; a buyer came directly to us and we quickly had an offer on the table the first week of December for a cash closing before the end of the year.

It needs to be mentioned that our seller grew up on this ranch. It was his father’s place, and there was a strong emotional tie intact. As the reality of the looming sale set in, it turned out that our seller was not quite ready to let go.

As in most transactions these days, price was the biggest hurdle. The buyer was “all in” and pushing for a deal. The seller was not. We asked the buyer to give the seller the time needed to come to terms with the sale of his family’s ranch. We also encouraged both buyer and seller to stay engaged, and each obliged, taking small steps toward common ground. After six months of negotiations, they finally agreed to a price in May. During that time, we reached a stalemate on several occasions. At one point, there was no correspondence between the two parties for nearly a month. Even though it sometimes felt like this transaction would never come together, our team at Fay never gave up. Perseverance prevailed, and we successfully closed the deal in July.

“The strongest of all warriors are these two — time and patience.” - Leo Tolstoy, War and Peace

The buyer is now looking forward to autumn on his new ranch, especially the prospect of elk hunting in Montana. The seller is actively searching for a 1031 exchange property in Texas where he will spend more time with family. Each is now ready to start new chapters of their lives.

ABOUT THE BROKER:
Montana ranch broker Michael DeShore can be contacted through the Fay Ranches office in Missoula.

The Land Report Spring 2012

Enjoy the Spring issue of The Land Report!

Learn the stories of America’s Best Brokerages in our second annual survey. More than 70 are profiled from coast to coast. Read how Bernie Uechtritz pulled off 2011′s Deal of the Year by selling Camp Cooley Ranch in just 45 days. Find out why George Clooney has such strong ties to the land in the Academy Award-winning movie The Descendants.

For more up to the minute reports on listings, auctions, sales, and breaking news pertaining to land and landowners, be sure to follow The Magazine of the American Landowner on Facebook and Twitter. Better yet, Land Report is now on Pinterest.

P.S. Our award-winning quarterly magazine is available in a print version via subscription.

Land Report March 2012 Newsletter

The Spring issue of The Land Report has arrived!

Right now it’s en route to bookstores such as Barnes & Noble and subscribers’ offices around the world, but thanks to the miracles of modern technology you can read right now right HERE.

Learn the stories of America’s Best Brokerages in our second annual survey. More than 70 are profiled from coast to coast. Read how Bernie Uechtritz pulled off 2011′s Deal of the Year by selling Camp Cooley Ranch in just 45 days. Find out why George Clooney has such strong ties to the land in the Academy Award-winning movie The Descendants.

For more up to the minute reports on listings, auctions, sales, and breaking news pertaining to land and landowners, be sure to follow The Magazine of the American Landowner on Facebook and Twitter. Better yet, Land Report is now on Pinterest.

P.S. Our award-winning quarterly magazine is available in a print version via subscription.

Land Report February 2012 Newsletter

More and more investors are turning to land. Not only is it a safe haven for their capital, but in many instances it can throw off steady revenue streams. The February edition of the Land Report newsletter showcases numerous properties with substantial income-generating potential.

Let’s start with Hudye Farm: almost 18,000 acres of dryland and irrigated farming along the Colorado-Kansas state line.

Add to this Montana’s Broken O Ranch, which features The Treasure State’s largest block of irrigated land as well as an impressive cow-calf operation and significant recreational income.

We also provide hyperlinks to eight other properties in The Land Report Top Ten, including several significant cattle operations with proven returns, including Hawaii’s Hana Ranch, Texas’s Rockpile Ranch, and Montana’s Dana Ranch.

For more up to the minute reports on listings, auctions, sales, and breaking news pertaining to land and landowners, be sure to follow The Magazine of the American Landowner on Facebook and Twitter.

P.S. Our award-winning quarterly magazine is available in a print version via subscription.

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