Business

Friday, Sep. 05, 2008

Wine Notes: Rob Rossi and Bill Swanson have purchased a parcel of winery land along Corbett Canyon Road

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An Edna Valley property that has served as a production, winemaking facility and distribution site for numerous national wine brands has been sold to two partners with county roots.

Developer Rob Rossi and Bill Swanson, the chief executive officer of Massachusetts-based Raytheon Co. and an Edna Valley homeowner who grew up in Morro Bay, bought the vineyard and winery facility at 2196 Corbett Canyon Road for an undisclosed sum.

The property was sold by Vintage Wine Trust Inc., a San Rafael-based real estate investment trust. A REIT is a corporation or business trust that manages a portfolio of real estate. In this case, the trust focuses solely on the wine and vineyard industry. The deal closed July 31.

The sale did not include the Corbett Canyon Vineyards&Winery, which is owned by The Wine Group. Based in San Francisco, it’s one of the country’s largest wine producers.

“We intend to create what we feel will be a quality brand reflecting estate- grown Edna Valley fruit,” Rossi said.

The acquisition includes nearly 100 acres (60 acres are planted with chardonnay and pinot noir grapes), existing facilities totaling about 50,000 square feet, a residence, a small amphitheater and a tasting room.

Rossi, a partner in Ancient Peaks, whose fruit is grown primarily at the Santa Margarita Vineyard, said the property will not only help launch a new brand in Edna Valley, but also provide added capability to produce North County wines. Rossi’s Ancient Peaks is featured in the September issue of Sunset magazine, which rated its zinfandel the buy of the year in the $10 to $15 range.

“Our yet-to-be-named Edna Valley facility has an annual crush and press capacity of up to 6,000 tons and it has over a million gallons of stainless and barrel storage,’’ Rossi said. “It was built by Jim Lawrence back in 1978. I was actually a practicing architect back then and worked for Jim. So, it’s like coming back home. I like that aspect.’’

Two or three small wine makers have rented space in the facility as well, Rossi said, which will open it up to multiple brands.

“Then, on the larger side, we will have the ability to do custom crush for other grape growers,’’ said Rossi, who is already working closely with Mike Sinor, a winemaker for Ancient Peaks and formerly of Domaine Alfred, another Edna Valley winery. “We can provide a full service.”

Potential to be a ‘jewel’

Joseph Ciatti, chairman and CEO of the Vintage Wine Trust, called the property a “jewel in the rough’’ and said Rossi’s group will do “a great job with the facility.’’

Two years ago, Vintage Wine Trust Inc. purchased Corbett Canyon Vineyards&Winery property for $8

million from the Wine Group. The Wine Group then leased back the assets for two years. When the contract expired, the trust was left searching for a new tenant. The new wine-makers will not produce Corbett Canyon wines or any other national brands there.

The Wine Trust’s strategy was to buy wineries and lease them back, Ciatti said. The trust had hoped to invest about $400 million to buy properties and had plans to go public, registering with the Securities and Exchange Commission in 2005. But after three years, it had 15 properties and had spent only $175 million.

The trust shopped for a buyer, but when no one expressed interest, it decided in April to liquidate its properties, Ciatti said. The Edna Valley winery and vineyard is part of that portfolio.

“He’s (Rossi) a well-known partner down there, and they really care about the area,’’ Ciatti said. “In time, it will be a spectacular place.’’

Gwen Othman, co-winemaker at Kynsi Winery, located across the road from the property, said she’s excited about the plans.

“For us, it’s like having good friends across the street,’’ she said. “It’s our hope that it will become more of an upscale winery that would have a tasting bar. I believe their focus would be for a higher-end wine that really reflects what Edna Valley is capable of producing.’’

Editor’s note: Janis Switzer is on vacation.