CHAPMAN RANCH KLAMATH FALLS, OREGON $3,950,000 4,240± ACRES LISTING AGENT: TRENT JONES 560 2ND AVENUE NORTH SUN VALLEY, IDAHO 83340 P: 208.622.4133 M: 208.720.2871 TJONES@HALLANDHALL.COM
Land that s where it all begins. Whether it is ranch land or family retreats, working cattle ranches, plantations, farms, estancias, timber or recreational ranches for sale, it all starts with the land. Since 1946, Hall and Hall has specialized in serving the owners and prospective owners of quality rural real estate by providing mortgage loans, appraisals, land management, auction and brokerage services within a unique, integrated partnership structure. Our business began by cultivating long-term relationships built upon personal service and expert counsel. We have continued to grow today by being client-focused and results-oriented because while it all starts with the land, we know it ends with you. WITH OFFICES IN: EATON, COLORADO BILLINGS, MONTANA DENVER, COLORADO BOZEMAN, MONTANA STEAMBOAT SPRINGS, COLORADO MISSOULA, MONTANA SUN VALLEY, IDAHO BUFFALO, WYOMING HUTCHINSON, KANSAS COLLEGE STATION, TEXAS NORTH PLATTE, NEBRASKA LUBBOCK, TEXAS SOUTHEASTERN US SALES AUCTIONS FINANCE APPRAISALS MANAGEMENT 2
EXECUTIVE SUMMARY Encompassing its own secluded valley, the Chapman Ranch spreads across 4,240± deeded acres and includes 400± irrigated acres with associated water rights considered to be among the most reliable in the upper Klamath Basin. The ranch, located 25 miles from Klamath Falls, Oregon, is accessible year around from paved county roads, while an excellent internal road system enables one to reach virtually all parts of the property. Timbered uplands consisting of pine, cedar, and fir cover the ranch and encircle subirrigated meadows and sprinkler-irrigated cropland on the valley floor. Improvements include two quality homes, hay storage, equipment sheds, and steel corrals. Eligible for up to four landowner preference tags, the property is home to elk and mule deer along with a host of other wildlife. Three wells provide secure irrigation water supporting a variety of commercial row crops including seed potatoes, carrots, grain, and dairy quality alfalfa under two center pivots, wheel lines, and solid set handlines. The balance of the ranch is set up for summer and fall grazing with excellent stock water throughout. Depending on an owner s objectives, the ranch can be configured to accommodate a variety of uses and management schemes from a balanced, year-round cow/calf operation, to a summer pasture operation, to a row crop farm with seasonal grazing. 3
LOCATION The Chapman Ranch is located in southern Oregon s Yonna Valley 25 miles northeast of the city of Klamath Falls (population 21,000). The ranch is reached by paved, all-season county roads from State Highway 140, which links Klamath Falls with Lakeview, Oregon, 95 miles to the east. Retaining a small town aura, Klamath Falls is the center of commerce for the region and home to a full array of retail and commercial venues as well as quality health care at Sky Lakes Medical Center. Crater Lake-Klamath Regional Airport lies five miles south of the city and is home to a fixed base operator, Klamath Aircraft Services, as well as the Oregon Air National Guard 173d Fighter Wing. Medford, Oregon is located 100 miles west of the ranch and provides air service from Rogue Valley International-Medford Airport on Alaska, Delta, United, and Allegiant Airlines. Amtrak also serves Klamath Falls operating its Coast Starlight passenger train daily between Seattle and Los Angeles. 4
LOCALE Klamath County is located in south central Oregon east of the Cascade Range along the border with California. The county features a diverse landscape from snowcapped mountains and rugged, heavily timbered mountain slopes to rolling sagebrush benchlands and broad, flat valleys. Klamath County covers approximately 4 million acres with the Fremont-Winema National Forest comprising 2.3 million acres of the county s landmass. The lucrative beaver pelt market lured trappers to the area in the early 19th century, while the area s fertile bottomlands drew settlers from the eastern United States along the Applegate Trail for over 100 years beginning in the 1840s. Located just north of Klamath Falls, Upper Klamath Lake is the largest freshwater lake in the state and one of the largest in the country. Water from the lake is used toward the irrigation of 240,000 acres in southern Oregon and northeastern California as part of the federal Klamath Project initiated in 1905. The lake is one of the best birdwatching areas in the Northwest with multitudes of waterfowl and shorebirds taking advantage of the lake s marshy habitat during their spring and fall migrations. The Williamson River is Upper Klamath Lake s principal tributary stream and famous for its trophy-sized redband trout (the region s native rainbow trout), which migrate up the Williamson during summer months. Majestic Crater Lake National Park, Oregon s only national park, is also located in Klamath County just 60 miles north of Klamath Falls. Famous for its amazing water clarity and deep blue color, Crater Lake is the deepest lake in the Western Hemisphere with an average depth of nearly 1,150 feet. 5
GENERAL DESCRIPTION Bordered by private ranch and timber holdings, the Chapman Ranch is a well-blocked property extending approximately three miles from north to south and three miles east to west. Egert Road provides primary access to the ranch and connects with the property s southeast corner. An excellent interior road network extends north from Egert Road and enables one to reach virtually all sections of the property. Buck Creek is a small seasonal stream that originates on national forest lands north of the ranch and flows southward through the center of the property. Over the millennia, flows from Buck Creek have created a secluded valley that is at the heart of the Chapman Ranch. Within this area are approximately 400± acres under sprinkler irrigation producing a variety of high value row crops, including alfalfa, grain, carrots, and seed potatoes. Timbered foothills and sloping uplands extend west from Buck Creek and encompass native rangelands, springs and wet meadows, brushy pockets of mahogany and manzanita, and large stands of pine, fir, spruce and juniper. The section of the ranch lying east of Buck Creek consists of approximately 2,000 acres of planted pine plantation and extends to the eastern property boundary along Bliss Road. The ranch benefits from the Oregon, California & Eastern Woods Line State Trail which runs north to south through this section of the ranch. Considered Oregon s longest linear park, this 100- mile rail-to-trail conversion is built on the old railbed of the OC&E Railroad. The state owns and manages the trail for non-motorized uses along the trail s length from Klamath Falls to the communities of Bly and Sprague River. ACREAGE The Chapman Ranch consists of 4,240± deeded acres, more or less. IMPROVEMENTS The ranch s main agricultural and residential improvements are located on the west side of Buck Creek and include two quality homes (one of which was remodeled in 2015), equipment sheds, hay storage, and steel working corrals with squeeze chute. Elevated terraces overlooking the irrigated lands and adjoining sub-irrigated meadows provide numerous private building sites. 6
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CLIMATE The elevation of the ranch ranges from 4,250 feet at the southeast corner to 4,700 feet along the western boundary property. The climate is best described as semi-arid with about 230 sunny days a year and annual average precipitation of 14 inches. Summers are warm with daytime temperatures in the mid-80s and evenings cooling into the 50s. During the winter average daytime highs are in the low 40s. GENERAL OPERATION Diverse and well managed, the Chapman Ranch integrates ongoing agriculture with long term, sustainable forest management. The ranch has been carefully logged over the years (most recently in 2014) and features a quality long term timber asset that will only increase in volume and value as time passes. The owner leases the ranch s 400± irrigated acres to a Klamath County farmer who in 2015 is raising alfalfa hay, grain, carrots, and seed potatoes under 2 center pivots, wheel lines, and solid set hand lines. Three wells provide secure, reliable irrigation for the farming operation. Water right certificates and well information are available from the broker upon request. 8
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Taking advantage of good grass and abundant stock water, the owner leases the Buck Creek meadows and upland portions of the property to a neighboring rancher who pastures cattle during summer and fall months. The perimeter of the ranch is fenced as are the cropland areas. Cross fencing and drift fencing are in place throughout the upland portions of the property. In addition, the owners lease hunting privileges on the ranch to a local group of big game enthusiasts on a yearto-year basis. 10
WILDLIFE AND RECREATION RESOURCES The ranch and surrounding public lands are home to mule deer, elk, and antelope, and the ranch qualifies for as many as four landowner preference permits each year to hunt deer and elk. The ranch is home to a host of other wildlife species including black bear, mountain lion, sandhill cranes, raptors, and migratory songbirds. The fly-fishing waters of the Klamath Basin are exceptional and rival the West s most popular trout-fishing destinations. The Williamson and Wood Rivers, and the lakes they feed -- Upper Klamath and Agency, respectively -- routinely yield wild redband trout in the 20+ inch class. The Klamath River below Keno Dam, with a Federal Wild and Scenic River designation, only a few minutes west of Klamath Falls, is considered by many to be the state s best tailwater fishery for wild trout. There are also several excellent fee fishing operations in the area, including the famous Yamsi Ranch on the upper Williamson River and two stillwater fisheries Pronghorn Lake Ranch near Bonanza and Wild Billy Lake outside of Beatty. TAXES Property taxes are estimated to be $10,000 annually. There is no state sales tax in Oregon. 11
BROKER S COMMENTS The Chapman Ranch is a scenic, accessible, well-rounded property with exceptional water rights. The ranch can be managed in a variety of ways from a balanced, year-round cow/calf operation, to a summer pasture operation, to a row crop farm with seasonal grazing. With a limited supply of viable agricultural properties on the market, the ranch represents an excellent long-term real estate investment with potential to realize income from multiple sources including grazing, farming, timber management, and big game hunting. 12
Click on map above for link to Google Earth map of property. PRICE $3,950,000 NOTICE: Offering is subject to errors, omissions, prior sale, change or withdrawal without notice, and approval of purchase by owner. Information regarding land classifications, acreages, carrying capacities, potential profits, etc., are intended only as general guidelines and have been provided by sources deemed reliable, but whose accuracy we cannot guarantee. Prospective buyers should verify all information to their satisfaction. Prospective buyers should also be aware that the photographs in this brochure may have been digitally enhanced. 13
ADDITIONAL SERVICES OFFERED BY HALL AND HALL 1. MANAGEMENT SERVICES Hall and Hall s Management Division has a very clear mission to represent the owner and to ensure that his or her experience is a positive one. Services are customized to suit the owner s needs. They often begin with the recruiting and hiring of a suitable ranch manager or caretaker and are followed by the development of a management or operating plan along with appropriate budgets. Ongoing services include bill paying, ranch oversight, and consulting services as needed. Even the most sophisticated and experienced ranch owners appreciate the value of a management firm representing them and providing advice on local area practices and costs. Wes Oja and Jerome Chvilicek at (406) 656-7500 or Randy Clavel at (308) 534-9000 are available to describe and discuss these services in detail and welcome your call. 2. RESOURCE ENHANCEMENT SERVICES Increasingly the value of a ranch is measured by the quality of each and every one of its resources. Coincidentally the enhancement of a ranch s resources also increases the pleasure that one derives from the ownership of a ranch. Our management services have included the assessment of everything from wildlife habitat to bird habitat to water resources and fisheries and the subsequent oversight of the process involved with the enhancement of these resources. Wes Oja or Jerome Chvilicek at (406) 656-7500 are available to describe and discuss these services in detail and welcome your call. 3. AUCTIONS - Hall and Hall Auctions offers Another Solution to create liquidity for the owners of Investment-Quality Rural Real Estate. Our auction team has experience in marketing farmland, ranchland, timberland and recreational properties throughout the nation. Extreme attention to detail and complete transparency coupled with Hall and Hall s rolodex of over 40,000 targeted owners and buyers of rural real estate help assure that there are multiple bidders at each auction. In addition the unique Hall and Hall partnership model creates a teamwork approach that helps to assure that we realize true market value on auction day. For more information on our auction services contact Scott Shuman at (800) 829-8747. 4. SPECIALIZED LENDING - Since 1946 Hall and Hall has created a legacy by efficiently providing capital to the intermountain west. In addition to traditional farm and ranch loans, we specialize in understanding the unique aspects of placing loans on ranches where value may be influenced by recreational features, location and improvements and repayment may come from outside sources. Our extensive experience and strong relationships with our lenders allows us to quickly tell you whether we can provide the required financing. Competitive Pricing Flexible Terms Efficient Processing In-House Appraisals Common Sense Underwriting Dave Roddy (406) 656-7500 Mike Hall or Judy Chirila (303) 861-8282 Randy Clavel (308) 534-9000 Monte Lyons (806) 698-6882 14
Oregon law requires that we provide the following disclosure: REPRESENTATION OF BOTH BUYER AND SELLER INITIAL AGENCY DISCLOSURE PAMPHLET ORS 696.815 (1) authorizes a real estate licensee to represent both the seller and the buyer in a real estate transaction under a disclosed limited agency agreement, provided there is full disclosure of the relationship under the agreement. Oregon Administrative Rules (OARs) adopted by the Agency provide the form and content of the disclosures and the related pamphlet. OAR 863-015-0215 is set forth below for the convenience of licensees. The material after the broken line can be copied and used as the required Initial Agency Disclosure Pamphlet. 863-015-0215 Initial Agency Disclosure Pamphlet An agent shall provide a copy of the Initial Agency Disclosure Pamphlet provided for in section (4) of this rule at first contact with each represented party to a real property transaction, including but not limited to contacts in-person, by telephone, over the Internet or World Wide Web, or by electronic mail, electronic bulletin board or a similar electronic method. An agent need not provide a copy of the Initial Agency Disclosure Pamphlet to a party who has, or may be reasonably assumed to have, already received a copy of the pamphlet from another agent. First contact with a represented party means contact with a person who is represented by a real estate licensee or can reasonably be assumed from the circumstances to be represented or seeking representation. The Initial Agency Disclosure Pamphlet shall be printed in substantially the following form: INITIAL AGENCY DISCLOSURE PAMPHLET (OAR 863-015-215(4)) This pamphlet describes agency relationships and the duties and responsibilities of real estate licensees in Oregon. This pamphlet is informational only and neither the pamphlet nor its delivery to you may be construed to be evidence of intent to create an agency relationship. Real Estate Agency Relationships An agency relationship is a voluntary legal relationship in which a real estate licensee (the agent ) agrees to act on behalf of a buyer or a seller (the client ) in a real estate transaction. Oregon law provides for three types of agency relationships between real estate agents and their clients: Seller s Agent -- Represents the seller only; Buyer s Agent -- Represents the buyer only; Disclosed Limited Agent -- Represents both the buyer and seller, or multiple buyers who want to purchase the same property. This can be done only with the written permission of both clients. The actual agency relationships between the seller, buyer and their agents in a real estate transaction must be acknowledged at the time an offer to purchase is made. Please read this pamphlet carefully before entering into an agency relationship with a real estate agent. Duties and Responsibilities of an Agent Who Represents Only the Seller or Only the Buyer Under a written listing agreement to sell property, an agent represents only the seller unless the seller agrees in writing to allow the agent to also represent the buyer. An agent who agrees to represent a buyer acts only as the buyer s agent unless the buyer agrees in writing to allow the agent to also represent the seller. An agent who represents only the seller or only the buyer owes the following affirmative duties to their client, other parties and their agents involved in a real estate transaction: 1. To exercise reasonable care and diligence; 2. To deal honestly and in good faith; 3. To present all written offers, notices and other communications in a timely manner whether or not the seller s property is subject to a contract for sale or the buyer is already a party to a contract to purchase; 4. To disclose material facts known by the agent and not apparent or readily ascertainable to a party; 2015 HALL AND HALL WWW.HALLANDHALL.COM INFO@HALLANDHALL.COM 208..622.4133 15
5. To account in a timely manner for money and property received from or on behalf of the client; 6. To be loyal to their client by not taking action that is adverse or detrimental to the client s interest in a transaction; 7. To disclose in a timely manner to the client any conflict of interest, existing or contemplated; 8. To advise the client to seek expert advice on matters related to the transactions that are beyond the agent s expertise; 9. To maintain confidential information from or about the client except under subpoena or court order, even after termination of the agency relationship; and 10. When representing a seller, to make a continuous, good faith effort to find a buyer for the property, except that a seller s agent is not required to seek additional offers to purchase the property while the property is subject to a contract for sale. When representing a buyer, to make a continuous, good faith effort to find property for the buyer, except that a buyer s agent is not required to seek additional properties for the buyer while the buyer is subject to a contract for purchase or to show properties for which there is no written agreement to pay compensation to the buyer s agent. None of these affirmative duties of an agent may be waived, except #10, which can only be waived by written agreement between client and agent. Under Oregon law, a seller s agent may show properties owned by another seller to a prospective buyer and may list competing properties for sale without breaching any affirmative duty to the seller. Similarly, a buyer s agent may show properties in which the buyer is interested to other prospective buyers without breaching any affirmative duty to the buyer. Unless agreed to in writing, an agent has no duty to investigate matters that are outside the scope of the agent s expertise. Duties and Responsibilities of an Agent Who Represents More than One Client in a Transaction One agent may represent both the seller and the buyer in the same transaction, or multiple buyers who want to purchase the same property only under a written Disclosed Limited Agency agreement, signed by the seller, buyer(s) and their agent. When different agents associated with the same real estate firm establish agency relationships with different parties to the same transaction, only the principal broker (the broker who supervises the other agents) will act as a Disclosed Limited Agent for both the buyer and seller. The other agents continue to represent only the party with whom the agent already has an established agency relationship unless all parties agree otherwise in writing. The supervising principal broker and the agents representing either the seller or the buyer have the following duties to their clients: 1. To disclose a conflict of interest in writing to all parties; 2. To take no action that is adverse or detrimental to either party s interest in the transaction; and 3. To obey the lawful instruction of both parties. An agent acting under a Disclosed Limited Agency agreement has the same duties to the client as when representing only a seller or only a buyer, except that the agent may not, without written permission, disclose any of the following: 1. That the seller will accept a lower price or less favorable terms than the listing price or terms; 2. That the buyer will pay a greater price or more favorable terms than the offering price or terms; or 3. In transactions involving one-to-four residential units only, information regarding the real property transaction including, but not limited to, price, terms, financial qualifications or motivation to buy or sell. No matter whom they represent, an agent must disclose information the agent knows or should know that failure to disclose would constitute fraudulent misrepresentation. Unless agreed to in writing, an agent acting under a Disclosed Limited Agency agreement has no duty to investigate matters that are outside the scope of the agent s expertise. You are encouraged to discuss the above information with the agent delivering this pamphlet to you. If you intend for that agent, or any other Oregon real estate agent, to represent you as a Seller s Agent, Buyer s Agent, or Disclosed Limited Agent, you should have a specific discussion with him/her about the nature and scope of the agency relationship. Whether you are a buyer or seller, you cannot make a licensee your agent without their knowledge and consent, and an agent cannot make you their client without your knowledge and consent. Trent Jones of Hall and Hall and Linda Long of Crater Lake Realty are the exclusive agents of the Seller. 2015 HALL AND HALL WWW.HALLANDHALL.COM INFO@HALLANDHALL.COM 208..622.4133 16