Bernard Uechtritz’ Icon Global Group announced on Oct. 16 it is seeking offers for the 37,000-plus acre KC7 Ranch near Balmorhea, Texas in Reeves and Jeff Davis counties.
The massive property is being sold out of bankruptcy from holdings of Fort Worth businessman Thomas Darden.
Dallas’ Icon Global Group, who has handled the sale of several large Texas ranches, was hired by the court to sell the property to the highest bidder by Nov. 30.
The court ordered the liquidation of the ranch in its entirety inclusive of all owned assets which importantly include extensive water, mineral and surface fee simple rights. The property includes a nearly 10,000 square foot original 1890’s stone lodge remodeled in 2007 along with extensive other capital improvements, headquarters compound, infrastructure, plant and equipment. The property has 10,650+- net mineral acres included in the offering.
Federal Judge Hon. Mark Mullins ordered the appointment of Uechtritz and his Icon Global Group to immediately sell the property in an unopposed hearing in United States Federal Bankruptcy Court – Northern District of Texas, Fort Worth Division. Uechtritz’ appointment was at the recommendation of the Debtor’s designated Chief Marketing Professional (CMP), attorney Joseph M. Coleman with Kane Russell Coleman and Logan PC.
Significantly, a valuable ground water rights component is included in the offering, which incorporates a massive potential frac water development opportunity. As set forth in most recent court documents, the Chief Marketing Professional (and thus broker) is authorized by the Court to “sell the property free and clear of the ground water lease among KC7 Ranch, Ltd. and Wolfcamp Water Partners LLC.”
“The inclusion of the previously unavailable but immensely valuable owned water rights in this property is a game changer and makes for an extremely unique and potentially revenue rich investment opportunity with predicted income streams potentially worth many multiples beyond any surface value acquisition price,” said Uechtritz. “I have seen data which indicates up to 400,000 barrels a day of water production is possible.”
Previously on the market at $52 million, there is now no list price set in the current offer/sealed bid plan. “However, I expect realistic entry level bids which will get enough of our attention to go to the court for approval will start around $35/40 million and go up from there,” said Uechtritz. “I fully expect multiple bids from multiple interested parties several of whom have already been in contact prior to today’s announcement.”
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