HATTRUP
FARMS
“It has been quite a journey, and we appreciate the diligence Erik, and the Metis team have brought to the successful sale of our vineyard properties during a tough time frame and market. The Metis team were very helpful in locating and helping us evaluate several sale options. From start to finish the Metis team has been diligent in conducting a thorough marketing effort and aligned us with great buyers who share our ongoing vision for the properties We couldn't be more pleased with the tenacity and expertise the Metis team brought to our successful sales effort. We would recommend Erik and the team highly to anyone who is looking to market a vineyard property.”
Joe & Susan Hattrup, Hattrup Farms
CLIENT
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Hattrup Farms, founded and owned by Joe and Susan Hattrup thirty years ago, includes Elephant Mountain and Sugarloaf Vineyards located three miles apart in the northwest corner of Washington’s Rattlesnake Hills AVA. The properties combine for over 200 total acres, with 162 acres planted to wine grapes. The sites are some of Washington’s early high-elevation vineyards, situated at over 1000 feet, and epitomize the area with their extended hours of intense sunlight, rich soils, cool nights, and very long growing season. A fourth-generation farmer and accomplished orchardist, Joe Hattrup began planting vinifera grapes in the late 1990s at Elephant Mountain Vineyard. Starting with Cabernet Sauvignon and Merlot in 1998, Joe soon added Syrah and other RhoÌ‚ne varieties. Building on this success, in 2006 Hattrup started development of the nearby Sugarloaf Vineyard, slightly lower in elevation, but with more growing-degree days due to its steep southwest-facing slopes. Both properties enjoy very old and established water rights and significant water infrastructure. Each vineyard has played a part in producing some of Washington’s most acclaimed wines and enjoys an enviable list of some of Washinton’s top wineries as clients.
CHALLENGE
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Joe and Susan Hattrup decided after 25 years of grape growing it was time to explore a sale and retire. These two vineyards included thirteen total tax lots totaling 217 gross acres (of which 162 are planted and 24 additional plantable acres). The Hattrups and their team farmed the vineyards themselves and handled all their own fruit sales. It is a complex operation with 22 different grape varietals and a long list of winery clients, primarily small, high-end producers. The Washington wine industry is also in a state of oversupply, with significantly more acreage under vine than current demand supports. The challenge was to find a buyer who was capable of and interested in managing such a complex operation, understood the quality of the fruit from the vineyard (despite it being a lesser-known AVA), and was willing to take on this responsibility in the face of a challenging grape market.
PROCESS
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Leveraging its deep expertise in the Pacific Northwest wine industry, Metis identified a diverse pool of different buyer types capable of unlocking the potential of these unique vineyards while ensuring seamless management. The team launched a discreet, multi-faceted marketing strategy, targeting these potential buyers. Despite the challenging market this effort attracted significant interest and produced multiple offers. Among those interested in buying the property were multiple established Washington wineries, vineyard management companies, agricultural investment firms, and other regional vineyard owners.
Ultimately the vineyards sold to two parties, who decided jointly to pursue the opportunity, Andrew Schultz of Brothers in Farms along with Tim Gamble and Teresa Spellman Gamble of Tinte Cellars.
In an era often marked by challenging vineyard acquisition stories, this transaction turned out to be a feel good, full-circle story. Andrew Shultz, a graduate of Washington State University’s Viticulture and Enology program and a seasoned vineyard consultant and manager, worked at Hattrup Farms from 2012 to 2017 as General Manager. Over five years, he honed his craft, developing a profound respect for the vineyards and the mentorship of Joe Hattrup and vineyard foreman Emilio Garcia, who collectively bring over four decades of agricultural expertise. Andrew credits Joe and Emilio as his mentors who helped lay the foundation upon which Andrew subsequently built his reputation as one of the top vineyard managers in the state. His subsequent success put him in the position to be able to return to the vineyards where he cut his teeth as their new owner.
One of Andrew’s clients was Tinte Cellars. He knew Tinte was looking for more estate vineyard land, especially to expand their offerings of white wines and unique varietals. He invited the Gambles to join him in the acquisition, with Tinte taking on approximately 50 acres of some of the more unique plantings at Sugarloaf Vineyard. Schultz would ultimately acquire all of Elephant Mountain Vineyard and the balance of Sugarloaf Vineyard and manage the entirety of both sites.
Following the signing of a letter of intent by both parties, Metis shifted its focus to managing the diligence process. Given the parties’ familiarity with each other and with the sites, a smooth diligence process concluded with a and successful transaction.
OUTCOME
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Metis is proud to announce the successful transition of Elephant Mountain and Sugarloaf Vineyards, securing strong value in a challenging market for the clients. The Hattrups are delighted to see the legacy of Hattrup Farms continue under the stewardship of someone they have high confidence in.
Through this transaction, Schultz acquired Elephant Mountain Vineyards along with approximately half of Sugarloaf Vineyard, while the Gambles, through Tinte Estates, acquired approximately half of Sugarloaf Vineyard. Longstanding winery clients need not worry, the new owners are committed to fostering the longstanding relationships with the many wineries who have made outstanding wines from these vineyards over the years.
It is a gratifying homecoming for Schultz. “Learning from Joe and Emilio has been one of the greatest opportunities of my career,” Schultz said. “Their unmatched expertise in farming inspires me, and I'm excited to carry that knowledge forward in our ongoing work together.”
“We’re excited to nurture these vines and continue producing exceptional grapes that showcase the unique terroir of the Rattlesnake Hills AVA. This acquisition aligns perfectly with our vision of making a positive impact through exceptional wine and will significantly expand our choices when it comes to producing premium estate wines under our Tinte Cellars label," said the Gambles.
The Hattrups retained their home, situated in the middle of Sugarloaf Vineyard, and look forward to watching the new owners carry the legacy forward around them.