Forestry Investment Opportunity: Clallam Tree Farm Hits Market After 80 Years

For the first time in over 80 years, the highly respected Clallam Tree Farm, a highly esteemed timberland portfolio on the Olympic Peninsula, has been put up for sale. The sale presents an unparalleled opportunity for timberland investors.

Known as Project Teal, the property spans a substantial 115,250± acres, segmented into three primary investment units:

1. North Clallam Unit (40,800± acres)
2. South Clallam Unit (36,985± acres)
3. Jefferson Unit (31,344± acres)

A fourth unit, the Joyce Unit, located near the milling and export hub of Port Angeles, allows bidders for the primary sections a chance to propose on it as well.

A Closer Look at the Makeup of Project Teal

These timberlands in the Pacific Northwest are abundant and rapidly growing, showcasing a diverse coniferous forest dominated by planted Douglas fir and western hemlock. There are also western red cedar and Sitka spruce mixed in closer to the coast, Noble and Silver fir at higher elevations, and stands of commercial hardwoods found throughout the asset. 

Project Teal, nestled in the Western Olympic Peninsula, stands as a prime location for timberland growth in North America. With meticulous management and cutting-edge tree genetics, this property offers a legacy of sustainable forestry practices that will benefit future owners for generations to come. 

Investment Opportunities and Benefits

Project Teal boasts a unique combination of robust biological growth and a diverse ecosystem comprised of varied plant and animal species. The property offers a lucrative opportunity for investors interested in timber, carbon, and conservation initiatives. 

The property is strategically positioned near eight prominent watersheds, extending from the Hoko River watershed in the north to the Clearwater River watershed in the south. It is also advantageously positioned around local log markets bolstered by a lucrative Asian log export business and growing Canadian export prospects. The project will help to meet the high demand in a supply-crunched British Columbia region

The sale of Project Teal is conducted through a single-stage, sealed bid process. Qualified bidders will be granted access to the property and a virtual data room filled with detailed due diligence materials, opening in April 2024, with bids closing in June 2024. 

How ResourceWise Empowers Informed Investment Decisions

In light of recent timberland asset sales and sawmill closures in the US Pacific Northwest, how do you gather market intelligence and data to assess potential timberland acquisition targets? Considering the impact of these closures on long-term market conditions, how do you factor them into valuing a timberland acquisition target?

ResourceWise offers access to transaction-based data spanning over a decade through its SilvaStat360 Delivered Logs and Delivered Fiber online platforms. You can benefit from these insights alongside our global trade data dating back several decades on the WoodMarket Prices online platform. This reliable and historical information empowers our clients to spot market trends, enhance risk assessments, and make more informed decisions compared to alternative data sources.

Once a timberland property is purchased, SilvaStat360 can help in evaluating the asset's performance over time, identifying areas for improvement, and maintaining profit margins. Without access to independent market data, how can you accurately assess performance?

ResourceWise's Consulting team is also well-versed in conducting raw material supply assessments. Our team can help you evaluate the viability of pulp and paper mills and analyze the competitiveness of softwood sawmill cost curves in the US Pacific Northwest and US South regions.

With access to in-depth data like SilvaStat360 and the support of our experienced consulting team, investors can confidently navigate the intricate landscape of timberland acquisitions. Using comprehensive market intelligence and historical trade data, ResourceWise empowers clients to make informed decisions that maximize their investment potential. Learn more about how ResourceWise can guide you toward profitable and sustainable investment opportunities in the forestry sector.