Kona Hills · Hawaiʻi Island · A proposed mOrganic estate acquisition · Rule 506(c) · Accredited investors only
Kona Hills — the Farm That Came Back
The largest single estate in the Kona Coffee Belt, and a plan to RESTORE it into a working farm, a food system and a destination.
mOrganic Holdings, LLC has a time-limited agreement to acquire the 1,983-acre Kona Hills heritage coffee estate from a bank-appointed receiver, in a court-supervised sale, for $15.0 million. The independent as-is appraisal is $41.8 million (Grattan Park Inc., GP-035, reaffirmed by the appraiser effective 7 September 2026), so the price is 36 cents on the appraised dollar. About 254,570 coffee trees are already in the ground, and the estate harvested 2.12 million pounds of cherry in 2024/25. The land did not fail. A business model did: every pound sold as commodity green bean at roughly a 12% gross margin, with no roasting, no direct channel, no visitor operation, and about $45 million of debt.
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Verify to unlock the appraisalThe thesis
RESTORE the Value
Every capability the prior owner lacked is an opportunity, not a defect in the underlying asset. The plan rests on one verb.
The Land
Regenerative agroforestry rebuilds soil health and long-term productive capacity across the estate.
The Economics
From 100% commodity green bean to roasting, an estate brand and higher-margin channels.
The Connection
Direct-to-consumer, subscription and trade channels, including mOrganic’s Japan relationships.
The Destination
A paid tasting and visitor experience that makes Kona Hills a place, not only a supplier.
The asset
An operating estate, bought as a turnaround
This is not a development. The trees are in the ground, the crop is being harvested, and an independent appraiser has underwritten the land.
| Property | Location | Acres |
|---|---|---|
| Hokukano Ranch | Kealakekua | 1,392.710 |
| Kealakekua Heritage Ranch | Captain Cook | 500.000 |
| Coffee Grounds (5 parcels) | Holualoa | 90.259 |
| School House | Kealakekua | 0.404 |
| 8 parcels across 4 properties, fee simple | 1,983.373 | |
- 376.5 net planted acres at appraisal, plus 95.6 prepared acres ready to plant, taking the planted area to about 472 acres.
- 254,570 trees planted 2017–2022; 92% Typica, 5% Caturra, the balance SL34, Geisha, Victoria and Liberica.
- On-site dry mill, dry pad and color sorter at Coffee Grounds; Starbucks C.A.F.E. Practices certified; GACC-registered for export to China.
- The largest single estate in the Kona Coffee Belt, which totals only about 3,815 acres.
| Crop year: cherry harvested | Pounds |
|---|---|
| 2023/24, all properties | 1,169,816 |
| 2024/25, Hokukano | 1,892,983 |
| 2024/25, Coffee Grounds | 192,139 |
| 2024/25, Kealakekua Heritage Ranch | 37,587 |
| 2024/25 total | 2,122,709 |
Harvest poundage from the Kona Hills LLC property summary. Audited financial statements are not yet available.
Why it failed
And why that is the opportunity
| Capability | Under prior ownership | Under mOrganic |
|---|---|---|
| Sales | 100% commodity wholesale green bean; a price taker at about a 12% gross margin | An estate-branded 100% Kona coffee sold at the gate, online, by subscription and to trade |
| Processing | Contracted off-site milling; no roasting | On-site roasting, processing and packaging |
| Visitors | No visitor center, tours or tasting | A paid, three-hour tasting and estate experience |
| Land | Coffee only | Coffee plus coconut, moringa and cacao in a regenerative agroforestry canopy |
| Balance sheet | About $45 million of debt it could not service | Acquired from the receiver at $15.0 million, subject to completion of the court-supervised sale |
The Kona Hills Experience
A destination that becomes the distribution
The plan is a paid, three-hour estate tasting that starts at a Visitor Center inside an Agricultural Center of Excellence: 100% Kona coffee from the estate’s own trees, estate-grown chocolate, coconut, moringa, macadamia and hyper-locally grown strawberries, with a planned portfolio of estate spirits subject to federal and Hawaiʻi County liquor licensing.
A cold-start coffee brand buys its customers through paid channels. A destination meets them at the gate: guests who have paid to be there, tasted the product, and can become subscribers at almost no acquisition cost. Nearby operators each own one narrow position. No one else has the land to hold a guest for three hours.
The ingredients come from the HyperLocal EcoSystem™: a coconut over-canopy, moringa mid-canopy and cacao under-canopy interplanted with coffee, alongside controlled-environment aquaponics (CEAq) growing strawberries, greens and herbs year-round.
The offering
$40.0 million to acquire and restore Kona Hills
| Term | Summary |
|---|---|
| Structure | Traditional limited partnership that owns the property |
| Project funding | $40.0 million |
| Minimum | $100,000 subscription |
| Lead investor | $1.5 million lead subscription, funding the earnest money deposit |
| Warrant | Each LP receives warrants to invest an amount equal to its LP investment in mOrganic Holdings, LLC at a 20% discount to Series A pricing |
| Investors | Verified accredited investors only (Regulation D, Rule 506(c)) |
| Target closing | 1 January 2027 |
Preferred return, distribution waterfall and all other terms are set only in the Summary of Principal Terms and the definitive offering documents.
| Use of proceeds | Amount | Share |
|---|---|---|
| Acquire the estate | $15,000,000 | 37.5% |
| Closing, title, legal, diligence and offering costs | $1,000,000 | 2.5% |
| Diversify: roasting, packaging, brand, direct-to-consumer, visitor infrastructure | $2,000,000 | 5.0% |
| Expand: coconut, moringa and cacao; farm restoration | $5,000,000 | 12.5% |
| Regenerate: the HyperLocal EcoSystem | $6,000,000 | 15.0% |
| Build out: CEAq facility | $10,000,000 | 25.0% |
| Operate: working capital and reserve | $1,000,000 | 2.5% |
| Total project funding | $40,000,000 | 100% |
What to weigh
The risks, stated plainly
- The transaction may not happen. The agreement with the receiver is time-limited, and receivership sales can fail for reasons unrelated to the buyer.
- The appraisal is an opinion of value, not a bid. No one has offered $41.8 million for this land, and what a receiver accepts is not evidence of what the open market would pay.
- There are no audited financial statements yet. Only harvest poundage and the appraiser’s projections. We will not close without them.
- The producing acreage is unresolved. The 2026 property summary reports a smaller footprint than the appraisal; a field survey is underway.
- Permits are the binding constraint on the visitor plan, and the capital requirement is larger than the purchase price suggests.
- This is an illiquid, long-horizon investment in a single agricultural asset on an island, exposed to weather, pests, labor, tourism cycles and coffee prices. You could lose your entire investment.
The full risk register goes to every verified investor with the offering documents.
Your next step
Verification opens the diligence: the appraisal, the full investor presentation, the offering documents, the financial model and the data room. It takes about two minutes, commits you to nothing, and every release is made by a person after your status is confirmed. Not there yet? Take the fact sheet or ask for a call.
Verify to unlock the appraisalRequest 15 minutes with KendellOr download the 2-page fact sheet →
Any investment in the offering described here involves substantial risk, including the risk of total loss of capital, is illiquid, and is suitable only for investors who can bear that risk. The transaction described is subject to a time-limited agreement with a bank-appointed receiver and may not be completed.
Statements about the property, its valuation and its operating history are qualified in full by the offering documents, including the risk factors. The independent appraisal referenced (Grattan Park Inc. GP-035) was reaffirmed by the appraiser effective 7 September 2026. An appraisal is an opinion of value; it does not represent a realizable amount. No return is projected or promised. Past performance of any operator at any other business is not indicative of future results at Kona Hills.
mOrganic Holdings, LLC · 30 N Gould St, Ste R, Sheridan, WY 82801 · CEO@morganic.ag