Growing interest & demand for merchantable timber and carbon credits..any experience?

[AJ Wong]

Howdy! 

I’m a investor focused real estate broker on the OR & CA coasts but have recently seen a spike in interest and demand from investors, some with quite significant and prominent reputations, seeking merchantable timber lands and properties. Aside from conventional harvesting and land returns several have expressed interest on account of carbon capture and credits.  

Additionally several recent $100M+ closed transactions have closed nationally led by institutional investors and hedge funds pointing to a growing area of investor interest. 

I was hoping to connect with some brokers or investors with logging and investment experience in OR or beyond, as I would like to educate myself and build a network of brokers that can help facilitate larger and more complex transactions statewide. Also I think it’s such an interesting area of real estate that seemingly will be more critical and valuable over the near to long term. 

As an example of future growth potential happening NOW, a large local lender recently sought my cooperation as they work closely with several active portfolio investors and requested help in identifying quality potential properties for investment.

For example: how do investors assess value? Is it mostly based on board feet and underlying value of cleared land? 

How do carbon credits influence value and projections? 

Some of this might be beyond this resource but I will update as my experience in the area evolves. We’re in tentative discussions on 200+ acres with 3-4M board feet of Douglas Fir, Alder and Redwood.. 

Anyone ever been party to a timber appraisal?

Oh and what’s the commission? Just kidding. 

Thanks!