The Wall Street Journal reports this morning on a huge transaction in California: the 68,000-acre Onyx Ranch in the Sierra Nevada Mountains just outside of Bakersfield sold for $48 million ($705 per acre) to a joint partnership of the CIM Group, a leading urban development group, and Los Angeles-based Renewable Resources Group. Given present credit markets, the acquisition was funded by equity.
News of the closing was first reported last week by the Bakersfield Californian. Cole Frates, a partner in Renewable Resources Group, told the Californian that the ranch, located in Kern County, could eventually become a wind farm capable of producing between 300 and 500 MW. The ranch had been owned by Rudnick family members. Their Rudnick Estates Trust was represented by Steptoe & Johnson LLP.
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