TEMECULA, Calif. – January 3, 2024 – Cushman & Wakefield announced the firm has advised R.R. Donnelley & Sons Company (“RRD”), a leading global provider of multichannel business communication services and marketing solutions, in the sale of its 162,690-square-foot RRD Temecula Print Fulfillment & Distribution facility in Temecula (Riverside County), California. In conjunction with the disposition, RRD also agreed to a long-term leaseback to continue to occupy the entire facility that contributes to the company’s commercial printing business unit and provides a complete range of digital print-on-demand solutions.
The freestanding industrial property sold for $28.25 million to SENTRE, a vertically integrated commercial real estate investment management firm headquartered in San Diego.
Cushman & Wakefield’s Jeff Chiate, Rick Ellison, SIOR, Mike Adey, Bryce Aberg, Brad Brandenburg, and Matt Leupold firm’s national Industrial Advisory Group in Southern California represented RRD in the transaction.
“This was a desirable investment offering for a quality industrial asset in Southern California that is fully leased to a credit single-tenant, and in which the leaseback intends to provide predictable, stable cash flow on an absolute net lease. RRD’s historic and future commitment to this facility—which serves as a mission critical operation in the company’s network of facilities strategically located across the US—provides further investment stability,” said Executive Vice Chair Jeff Chiate. “Additionally, the sale of its real estate also benefits RRD providing immediate access to liquidity to continue to drive the company’s business forward.”
“Temecula’s limited supply of existing industrial space, combined with robust demand and modest new construction has established the city as a valuable industrial location among investors and prospective occupiers,” added Vice Chair Rick Ellison. “Temecula is one of the largest submarkets within the Inland Empire South market and acts as a southwestern anchor to the entire Inland Empire region. Temecula’s strategic proximity to the Inland Empire & San Diego coupled with strong leasing activity have kept its vacancy low at a mere 1.2% which has continued to fuel market rent growth and asking rates, according to Cushman & Wakefield’s research.”
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit www.cushmanwakefield.com.
About R.R. Donnelley & Sons Company
RRD is a leading global provider of multichannel business communication services and marketing solutions via products and service offerings such as commercial print, packaging, labels, statements, supply chain management, forms, business process outsourcing, direct marketing, digital print and fulfillment and digital and creative solutions. RRD distributes its products and services globally to over 22,000 customers, including 92% of the Fortune 100, 79% of the Fortune 500 and 67% of the Fortune 1000. The Company operates 118 domestic facilities and 66 international facilities totaling approximately 18.0 million square feet and employing 32,000 people(1). For the full year ended December 31, 2022, RRD recognized $5.4 billion in net sales and $505.9 million in Adjusted EBITDA.
On December 14th, 2021, RRD entered into a definitive merger agreement with, and was subsequently acquired by, affiliates of Chatham Asset Management, LLC (“Chatham”) on February 25, 2022.
About SENTRE
Founded in 1989, SENTRE is a vertically integrated real estate investment firm headquartered in San Diego with extensive experience in office, industrial, retail and multi-family properties. SENTRE has acquired, developed and/or operated projects throughout the West Coast totaling more than 10 million square feet and $4B in transactional volume. In addition, SENTRE co-founded Vesta, a dual listed (NYSE: VTMX; BMV: VESTA) publicly traded industrial real estate company operating in Mexico with a portfolio of over 33 million square feet valued in excess of $2.75 billion.
