Balo Vineyard and Winery Mark Stevens DRE# 00971195 c 707.322.2000 o 707.824.0200 mark.stevens@sothebysrealty.com EstateVineyard.com EstateDwellings.com
Balo Proposed Offering Premier Vineyards & Winery For Sale In the Heart of Anderson Valley s Golden Mile The Balo Winery and Estate includes established vineyards, winery equipment, a public tasting room, residence and other assets outlined in this offering. The Balo brand, inventory and barrels are available as a separate sale. This ultra-premium winery is located in the in the heart of Anderson Valley, far enough from the city to experience quiet country charm, yet close to the comforts and modern conveniences of town to attract plenty of wine enthusiasts. The Sonoma county airport is one hour away, and SFO is a short two-hour drive. A small airport is located in the Anderson Valley for private planes. In order to pursue this sale, Mark Stevens, broker associate for Artisan Sotheby s International Realty, has been retained as the exclusive representative for all negotiations in procuring a sale for these assets. Property Overview Acreage: This 14± acre property includes approximately 8± acres of vineyard plus a state-ofthe-art winery facility, a tasting room, and residence. Winery: The 4,000± square foot winery includes a crush pad for fermentation, winery equipment, barrel storage, and bottling capacity with the potential to produce 7,000 to 8,000 cases per year. The winery has ample storage for equipment at the front and side of the building. Tasting Room: A 700± square foot tasting room opens to a generous patio area which includes two bocce ball courts and garden seating areas. Brand: The ultra-premium Anderson Valley appelation Balo wine brand and inventory may be purchased with the property and asset acquisition. Residence: The property includes a secluded owner s area featuring a residence, gardens, pool, barn and outdoor entertainment area. While the information in this Memorandum has been obtained from sources believed to be reliable, it is not guaranteed to be accurate or complete. Prospective parties are advised to independently verify the accuracy and completeness of all information. 2
Balo Winery, Vineyard & Estate 3
Location Information 9001 California Highway 128 Philo, CA 95466 Balo Winery and Estate is located in Philo, California in the heart of Anderson Valley's "golden mile. Located roughly five miles northwest of Boonville, less than an hour from Healdsburg and approximately two and half hours from San Francisco, Philo is the second largest town in the valley. It is less than an hour to the Mendocino and Sonoma coast destinations with more than 100 Bed and Breakfast Inns and destination lodges. Philo and Boonville are the social and economic centers of the Anderson Valley you will find excellent choices for dining, lodging, shopping, and wine tasting. Other major towns include Yorkville and Navarro. There are no traffic lights in the entire valley even the most developed town of Boonville can be traversed in less than 60 seconds. For tourists and residents alike, this only adds to the locale's considerable charm. In addition, a number of wellplanned and rigorous agricultural zoning laws are in place to ensure that the country-feel is here to stay. 4
Property Map Pump Houses & Water Tanks Pond Barn Main Residence Winery Owner s Events Area Tasting Room 5
Local Wine Industry While vines have been cultivated in the area for well over a century, the focused grape growing and wine production industry is relatively new. In the 1960's, the Edmeades family were the first, planting 24 acres of grapes in the valley. Other intrepid wine growers soon followed and the area was rewarded with its own AVA (American Viticultural Area) in 1983, which is now known as the Anderson Valley AVA. The Anderson Valley is one of California's mildest wine grape growing regions. Many cool weather varietals like Pinot Noir, Chardonnay, Gewürztraminer, Pinot Gris and Riesling thrive in the unique microclimates. There are a number of wineries producing world class sparkling and still wines. Several ultra-premium wine growers sell their sought-after grapes to winemakers in Napa, Sonoma and elsewhere in the USA. 6
Anderson Valley AVA Approximately 16 miles long, Anderson Valley is located in Mendocino County roughly 115 miles north of San Francisco. It's a relatively narrow valley ranging from 1/2 mile to 1 1/2 miles wide with steep, evergreen studded hillsides on either side. The mountains and ridges provide a stunning backdrop for the rolling foothills and the bucolic valley floor. Vineyards, cattle and sheep ranches, horse properties, apple orchards, and several other agricultural industries line the valley from Yorkville (in the south) to Navarro (in the north). The valley's main water source is the Navarro River, which winds its way through the valley and out to the Pacific Ocean. Redwood trees line the banks of the Navarro, spanning the hillsides and surrounding land. Many of these trees are several hundred years old. Climate Summer days are long and dry with temperatures occasionally topping 85 degrees. In the evening, a cooling fog rolls down the valley, slowing the vines' metabolic activity. This daily Pacific Coast influence is responsible for a long growing season, which allows the grapes to develop intense flavors and reach an ideal ripeness without any of the overbaking that can happen in warmer climates. Balo Winery is located on a low vigor bench right above Indian Creek which provides ample air flow down from the north slope hills, through the vineyard and into the creek basin. The combination of soil type, climate and cultural activity (organic practices, hard pruning, dry farming) has created a Balo's premium vineyards and fruit. Balo is generally one of the earliest sites to bloom, set, color change and harvest for "still" Pinot Noir wine in Anderson Valley. 7
Vineyards Balo Winery is comprised of approximately fourteen acres, including 8± acres of vineyard. When the property was purchased in 2003 there were roughly six acres already planted, all to Pinot Noir clone 777 with 8' x 6' spacing on 101-14 rootstock. Half of that planted acreage was in its fourth leaf and half was in its third leaf. The plans to produce high quality wine required additional clonal diversity so the process of new planting and grafting to broaden the grape selection began. A 1.25-acre block was added to clone 828 on a sloping, rocky area in the front vineyard and a.5 acre block of the Martini clone was added on a terraced hillside above the pond. The existing three acres of vines were grafted over to an even amount of clones 115 and Pommard. All vineyards are dry farmed and are grown organically, although they do not hold an organic certification. Only organic herbicides and pesticides have been used on the property in the past 15 years. Vineyards Map Unit Legend Block Variety Clone Root-Stock Trellis Type A Pinot Noir 777 101-14 VSP B Pinot Noir 777 101-14 VSP C Pinot Noir 828 101-14 VSP D Pinot Noir 115 101-14 VSP E Pinot Noir Pommard 101-14 VSP F Pinot Noir Martini 101-14 VSP G Pinot Gris Colmar 53 101-14 VSP Total Vineyard Acres ~ 8 acres 8
Vineyards Vineyards Block Map D E F G Leach Field C B A 9
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Winery The winery was built by local architects and builders the design of the winery building and master landscape & hardscape plan that complemented the existing tasting room was done in a manner to honor the local agricultural architecture. The most distinctive feature is a pair of vents above the roofline meant to echo the vents of the few remaining apple drying barns in the valley. These vents are functional they act as the exhaust for the night air replacement system. The winery is fronted by a 2,300± square foot crush pad of which about half is covered. The winery building (4,500± square foot) is divided into three work areas: 1) the barrel room, 2) the central work area (which opens to the covered portico of the crush pad), and 3) the barrel & case storage area with an office, wine laboratory, and an ADA bathroom with shower. The east side access has an overhang sheltering the entrance to the winery with access to outside trade fixtures. This area also provides parking, including one ADA parking space. The flow of the winery is well planned with the central doors opening to the ample crush pad (2,300± square feet). On the north side of the winery out of site of the public is a cement pad of 560± square feet for storage of fermentation bins and seasonable equipment. The area is not covered. There is good separation of the winery and tasting room, though the two spaces remain just a short walk from each other so interested wine enthusiasts can take extended tours of the winery facilities. 12
Winery 13
Tasting Room Completed in 2006, the Balo tasting room features a kitchenette, slate floors, and a comfortable seating area around the fireplace. There are numerous venues for tasting wine including the front garden with beautiful flowers, outdoor seating on the patio and a bocce ball area.the back patio includes a Muganaini wood fire oven, DCS outdoor grill, an additional burner, running hot water, and power outlets. The back patio allows for larger events serving up to 50+ guests. There is also room for a small music stage. An ADA bathroom is conveniently located at the front of the tasting room. The tasting room is strategically located in one of the most scenic spots and concentrated areas for tasting rooms in Philo. Balo Winery is directly across from Indian Creek Inn, The Madrones and a handful of tasting rooms. To the west is the famous Golden Eye Winery. Domaine Anderson, owned by Roederer, is the property next to Balo. Each of these wineries have the highest visitor counts in the valley because of their ultra premium wine selections and brand recognition. 14
Tasting Room 15
Soils Balo vineyards have a combination of Perrygulch loam and Boontling loam soil types. The majority of the vineyard is planted on the Perrygulch soil, which is known for reasonable fertility, high water holding capacity, slow runoff and a low incidence of erosion. The vines are located on a rolling bench above Indian Creek. The soil contains a considerable amount of river rock from the days of the creek's formation. In some places these rocks are so plentiful that they're mixed with the soil all the way up to the surface. The moderately fertile soils combined with the well-drained characteristics of the high rock content present an ideal environment for quality grape production. Soils Map Unit Legend Map Unit Symbol Map Unit Name Acres 111 153 192 229 Boontling loam 15%-30% slopes Gschwend-Frenchman complex 0%-9% slopes Perrygulch loam 0%-9% slopes Wolfey-Bearwallow complex 30%-50% slopes 1.9 0.9 11.5 0.2 Total Acres 14.5 16
Soils Soils Map 17
Utilities Water The property's water sources are a well and appropriative water rights (1954) to Indian Creek a tributary of the Navarro River which borders the property to the north. Water is pumped from Indian Creek to a cistern under the bell tower workshop where it is fully treated for residential uses. Water from Indian Creek is also used for annual frost protection. The well provides water to the holding tanks on the property and serves the winery and tasting room. In addition, the well has a UV purification system in a dedicated building and storage tanks. Located below the pond is a dedicated pump house for irrigation and chemical storage. POND The pond is approximately 1.75 acre-feet in capacity. Although the vineyards are generally dry farmed, there is capacity for vineyard drip irrigation when needed. Separate comprehensive water treatment systems supply the residence and the winery/tasting room needs. Waste Systems RESIDENCE The residence has its own septic system to the rear of the property. A new 4-bedroom septic system was installed in 2007. WINERY & TASTING ROOM The current owner went to great expense installing a state-of-the-art waste disposal system for both winery waste and black water treatment for winery guests and staff. The engineered system consists of numerous underground pretreatment and treatment tanks prior to pumping into the vineyard leach field (Vineyard Block C). 18
Utilities Propane and Electric RESIDENCE & BARN The residence and barn are serviced by two propane tanks supplying fuel for forced air heating systems and the kitchen range. Both the residence and barn have single-phase 200 amp service. The pool has solar heating with "pool-plastic" solar panels on the west northwest facing barn roof. WINERY & TASTING ROOM The tasting room is serviced by a single-phase 200 amp panel. A propane tank services the heating system and the outdoor grill. There is also a working wood fireplace in the tasting room. The winery is serviced by three phase 600 amp service with step down to 120/240 services for all the winery building's needs. *Utility Map and Plan Included in Folder 19
Owners Area Main Residence The residence is located in a private setting on the property's highest elevation looking out over the vineyards below and valley beyond. This 2 bedroom, 2 ½ bathroom house boasts a recently remodeled entryway and kitchen, while maintaining a charming rustic feel. Decking and patios provide ample outdoor areas to enjoy the spectacular views of the surrounding ridges. 20
Owners Area Bell Tower Workshop The architechture of the bell tower workshop brings us back to the early beginnings in Anderson Valley. The bell is thought to have come from the first schoolhouse in Philo and is a working bell. This 260± square feet building currently serves as storage space and a workshop for the property s needs, including housing the residential water treatment equipment though it has great potential for other creative uses. 21
Owners Area Private Events Area A private entertainment area is located at the back of the residence. Framed by a charming, single level 2,000± square foot barn with an early 20th century look, this secluded area allows for privacy for owner's pool use, working in the raised vegetable beds and enjoying al fresco dining on the patio and fireplace. The barn was completely rebuilt in 2013 with cement floors, insulated walls & ceiling, and a forced air heating system. All interior perimeter walls have rough sawn redwood wainscoting to 35". The barn doors open to the patio & pool area which allows for an expanded indoor venue for all manner of groups from intimate to larger gatherings. The saltwater pool is a modern rectangular 12' x 39' with an automatic pool cover for safety and energy conservation and is heated by solar panels. 22
Owners Area 23
The Brand Balo Wines The Balo brand may be purchased with the property and asset acquisition. The owners have not put a value on the brand. The inventory is available at cost of goods value for the case goods and the bulk wine available at the time of the sale along with an agreed upon value for the wine barrels. The 2012 vintage started with 864 cases and the production has grown to 1,334 cases for the 2017 vintage. Balo wines are made entirely from estate grown fruit and the mature vines, five carefully chosen clones (115, 777, 828, Martini and Pommard) and a world-class microclimate all come together in the bottle. The wine club was formed in 2014 with approximately 20 members and has grown to 120 members as of December 2017. The club has two tiers and ships twice a year. Custom Crush services are primarily bin to bottle services at a rate of $40.00 per case for red wines, $35.00 for white wines, bottling and labeling is an additional $3.50 per case for 750ml bottles. Production Summary Year Balo Production Custom Crush Production 2012 864 cases 1,500 cases 2013 873 cases 2,000 cases 2014 1,094 cases 2,500 cases 2015 848 cases 2,800 cases 2016 1,144 cases 6,000 cases 2017 1,334 cases (projected) 6,000 cases 24
The Brand Wine Currently Offered 2014 Estate Pinot Noir $45.00 Forward aromas of dried cherry, baking spice, and oolong tea bend to fresh mulberry and forest floor. Dark, red fruits balance vibrant, floral notes. Ripe pomegranate, black cherry, and wild blueberry are grounded in duxelles, slate and earth. 2015 Estate Pinot Noir $45.00 Deeply concentrated flavors of dark cherry and pomegranate carry a bold, fruit forward bouquet. With a subtle earthiness and unexpectedly soft finish, this is one of Balo's finest vintages of Pinot Noir. 2016 Pinot Gris $26.00 Upfront aromas of gooseberry and pressed white flowers and bee pollen followed by mouthwatering stone fruit and waxy-honeycomb with a finish that hints of fresh yogurt and lemon curd. Currently Sold Out 2014 Estate Pinot Noir 2015 Suitcase 828 Pinot Noir 2015 Pinot Gris 2016 Rose of Pinot Noir 2016 Pinot Noir Blanc 25
Accolades SF Chronicle International Pinot Noir Estate 2015 Gold Wine Competition - 2017 SF Chronicle International Pinot Gris 2015 Silver Wine Competition - 2017 Sunset Magazine Wine Competition - 2016 Pinot Noir Estate 2014 Gold Sunset Magazine Wine Competition - 2016 Pinot Gris 2014 Gold PinotFile - 2016 Pinot Noir Estate 2014 93 points Vinous - 2/11/16 Pinot Noir Estate 2014 94 points Vinous - 2/11/16 Pinot Noir Estate "Suitcase 828" 92 points 2014 Vinous - 2/11/16 Pinot Noir Estate 2013 90 points IWC - 5/1/14 Pinot Noir Estate 2012 90 points IWC - 5/1/14 Pinot Noir Estate "Suitcase 828" 90 points 2012 California Wine Advisors - 2/1/16 Avenging Angel Pinot Noir 2013 96 points Burghound - 1/15/15 Avenging Angel Pinot Noir 2012 89 points Wine Enthusiast - 5/1/16 Avenging Angel Pinot Noir 2013 91 points Wine Enthusiast - 5/1/16 Pinot Noir Estate 2014 89 points Wine Enthusiast - 5/1/16 Avenging Angel Pinot Noir 2012 93 points Wine Enthusiast - 5/1/15 Suitcase 828 Pinot Noir 2012 90 points Wine Enthusiast - 5/1/15 Estate Pinot Noir 2012 89 points Wine Enthusiast - 5/1/15 Pinot Gris 2013 89 points Connoisseur's Guide to CA Wine - 10/1/14 Pinot Noir Estate 2012 91 points SF Chronicle Competition - 2015 Pinot Gris 2013 Best of Class SF Chronicle Competition - 2015 Estate Pinot Noir 2012 Gold SF Chronicle Competition- 2013 Estate Pinot Noir 2010 Gold Pinot Report - 1/15/13 Estate Pinot Noir 2010 92 points Pinot Report - 11/15/11 Estate Pinot Noir 2009 91 points 26
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SUMMARY information HISTORY OF IMPROVEMENTS EQUIPMENT LIST MAPS 29
History of Improvements 2003 -Purchased 14 acre property with 6.5 acres of Pinot Noir grapes (all clone 777 planted in 1998), a circa 1978 house, a modest barn and shop -Re-grading and widening of interior roads 2004 -Removal of abandoned orchard, planting of 1.25 acres of clone 828 Pinot Noir -Installed pond, new pump house, and new irrigation and frost pumps -Installed frost protection 2005 -Upgraded agricultural electric service -Grafted 3 acre back vineyard from clone 777 over to a combination of Pommard and 115 2006 -Excavated hill, built tasting room with wood burning fireplace, slate floors, etc. and music stage/ stone retaining walls near highway 128 -Repaired and upgraded deer fencing and installed gates 2007 -New 4 bedroom septic system for house 2007-2009 -Upgraded and repaired trellis system 2009 -Upgraded creek pump and built new pump box -Installed new terraced entrance, steps, side garden and walkways from road -Added chlorination system to house water settle tanks -Added half bath and outdoor shower to house -New split cedar shake roof on shop 2010 -Installed commercial road ingress/egress at Highway 128 -Installed large, engineered exterior porch alongside house 2011 -New heating and air conditioning system at house 30
History of Improvements Continued 2012 -Installed new, state of the art, 4,500 sq ft winery (engineered steel building covered in redwood). -Winery won a design award. -Added second crush pad and exterior barrel and fermentation bin storage pad behind winery -Installed state of the art septic system for winery and tasting room (separate from house) -Planted extensive gardens and mature trees around winery and tasting room -Installed two bocce courts, exterior lighting, walking paths -Installed and paved front roads and parking lots -Prepared tasting room for opening, moved bathroom entrance, upgraded to code -Purchased all winery equipment (presses, sorting table, elevators, barrel racks, fermenters, tanks, etc.) -Installed underground concrete catchment zone for future water reclamation project, if desired 2013 -Installed concrete fire protection tank, hydrant and fire truck parking area -Constructed a shaded, enclosed dog run for customer's dogs -Added one vine acre of Pinot Gris on hillside (still determining if this block will be totally viable) -Upgraded barn, installed foundation, new roof, insulated, new redwood siding, heat and humidity control -Installed complete outdoor kitchen with custom stone pizza oven behind tasting room -Installed redwood fencing, trellis, etc, in winery and tasting room area -Installed stone entry wall with signage at entrance -Expanded decorative fencing along Highway 128 northbound 2014 -Installed large, new winery sign on highway 128 and letters on winery -Upgraded lab counters to stainless steel, upgrade lab equipment 2015 -Added hard-plumbed winery glycol system 2016-2017 -Renovated house 70% with new kitchen, new roof, new garage, new windows, floors, etc. 2017 -Added a heated, in ground salt water pool with entertainment area, gardens and outdoor fireplace by the renovated barn 31
Equipment List Balo Vineyards Equipment Inventory 2017 Basket Press - Hydrolic, 2 ton capacity Bladder Press - 3 ton whole cluster/6 ton fermented Destemmer Sorting Table Elevator Bottling Line, Monoblock Filler/Corker, 1301-100cs/hr Bottling Line, Monoblock Foiler/labeler, 6008-100cs/hr Bottling Line, Shaker Table Bottling Line, Screwcapper - 100cs/hr Bottling Line, Change Parts Filter Housing - Cartridge - 3"x30" Swash Steam Generator - 20K Watt Pressure Washer - 3.5gpm - 220v Pressure Washer - 3.5gpm - 110v Air Compressor - Portable Guth Mixer - 2" TC fitting Yamada Pneumatic Diaphragm Pump - 1.5" TC Yamada Pneumatic Diaphragm Pump - 2"TC Barrel Racks - Earthquake Resistant - 112 Racks Lenticular Filter Housings and components - 24"x36" Hoses - verious sizes and lengths, 1.5", 2", 3" TC Hardware - Various sizes, 1.5", 2", 3", 4" Tanks - See previous report Temperature Control Components Solenoid Valves, 3/4", one per tank Thermostat controlers, ETC, one per tank Carlsen Assoc. Europress Puelo/Carlsen Assoc. Puelo/Carlsen Assoc. Carlsen Assoc. GAI GAI GAI GAI GAI GW Kent ARS Northern Tool Northern Too,l Guth/Carlsen Yamada/Carlsen Yamada/Carlsen Barrel Safe GW Kent Red Cap Ranco 32
Equipment List Continued Lab Equipment Enolyzer Spectophotometer O2 meter ph Meter Carbodoser Ebuliometer Digital Densisty Meter, DMA Erthenmeyer Flasks, Beakers - Various sizes 600g Scale, Scout Pro Label Printer, QL-500 Unitech Scientific Hanna Inst. Hanna Inst. D&J Anton Parr Various Ohaus Brother Equipment Fixtures Air Compressor, 150psi max, 240v electric Ingersol Rand 10 ton Glycol Chilling system, 240v electric Crivellier Air Handler (AC in barrel room), 240v electric Unit Cooler (AC in case good storage), 240v electric AC/Heating unit in lab, 240v electric Mitsubishi Night air cooling system integrated with AC Refrigeration Tech. units/fans Smart Fog System (Humidity control in barrel SmartFog room) Dual On-Demand Hot water heaters, Propane Noritz - 376 gallons/hr, 380K BTU max Fan in barrel room, 120v electric Dayton Water Treatment Water softener Water particulate filter UV filter Northcoast Water Treatment Northcoast Water Treatment Northcoast Water Treatment 33
Assessor s Parcel Map APN's 046-080-27-00 & 046-080-38-00 Mendocino County AP Map may not be accurate. See Aerial Map on facing page. 34
Aerial Map 35
Mark Stevens DRE# 00971195 707.322.2000 mark.stevens@sothebysrealty.com EstateVineyard.com EstateDwellings.com 707.322.2000 While the information in this Memorandum has been obtained from sources believed to be reliable, it is not guaranteed to be accurate or complete. Prospective parties are advised to independently verify the accuracy and completeness of all information.