Cushman & Wakefield Advises Sale of 388,154 SF Core Industrial Portfolio for $74 Million

Two-project portfolio located in San Marcos and Temecula sold to separate buyers: Investcorp and Cire Equity

Cushman & Wakefield has arranged the sale of two industrial projects spanning six buildings and 387,454 square feet in the cities of San Marcos and Temecula in San Diego and Riverside counties. The properties were recently sold separately between January and May to two separate buyers for a combined total of $74.04 million.

The portfolio consisted of a four-building Class A industrial project totaling 221,294 sf in San Marcos that was 100% leased at the time of sale. Known as Pro•duc•tion, the project was built in 2018 and is located at 195 Bosstick Blvd. and 2946, 2950 and 2954 Norman Strasse Rd. and sold to Investcorp for $50 million. The sale closed in January.

The second project sale comprised two industrial buildings located at 26201 Ynez Rd. and 42259 Rio Nedo Rd. in Temecula. The assets were sold to Cire Equity in May for $24.04 million.

Cushman & Wakefield’s Aric Starck, Jeffrey Cole and Drew Dodds of the firm’s Capital Markets in Southern California represented the seller in the transactions.

“This portfolio provided a great opportunity for the two separate buyers to acquire a critical mass of institutional quality industrial real estate in San Diego’s desired North County and the city of Temecula in the South Riverside market. The portfolio included quality freeway adjacent single- and multi-tenant industrial properties with flexible suite sizes ranging from 13,822 sf to 94,172 sf. These buildings also feature desired industrial efficiencies with a combined 38 dock loading positions, 28 grade-level positions and an average clear height of 26 feet,” said executive vice chair Aric Starck. “Additionally, all six buildings in the portfolio are located on individual parcels within infill locations, providing high barriers for entry.”

All six buildings feature exceptional access to the major freeways of Interstate 15 and State Route 78, strategically and conveniently positioned within one mile of freeway on-ramps.

“The portfolio provided a unique opportunity to purchase assets within the high-demand markets of San Marcos and Temecula, which respectively have direct market vacancies of 4.3% and 4.2%. The San Marcos assets provide a best-in-class industrial for tenants. Completed in 2018, these buildings represent the most recent industrial development in San Marcos and the only major industrial development over the previous ten years,” added senior associate Drew Dodds.