Quad/Graphics | Regional Directory Printing Facility

Property Description

This industrial property was originally constructed in 1986 and serves as the Regional Directory Printing Facility for Quad/Graphics, Inc., the second largest commercial printer in the Western Hemisphere, with 22,000 employees operating in 54 plants in 9 countries. The property is operated on a 24/7 basis and is one of three Quad/Graphics facilities in the United States dedicated to directory (yellow pages) production. In addition to the printing production area, the property is also improved with a two-story office area containing 42,000 square feet of space. The property was expanded twice, in 1996 and 2009 to its current configuration of 169,816 square feet and contains ample undeveloped land to accommodate future building expansions.

Business Essential Attributes

The property serves as the only Quad/Graphics facility in the western United States dedicated to directory production, covering a territory as far north as Wisconsin and west to Hawaii. This is one of Quad/Graphics' most efficient plants in the U.S., due in part to the dedicated private rail spur that delivers five rail cars full of 3,000 pound rolls of paper every day. Rail delivery is very cost efficient, saving gas and labor costs that trucking would entail.

The ability to source daily railcar loads of printing paper rolls allows for the continuous operation of the plant's three state-of-the-art printing presses. This location services twelve primary accounts, including the company's two largest directory publishing customers, Yellowbook and Dex One; these clients provide this facility with guaranteed business volumes through 2021.

Additional Property Information

The property's unique attributes including, proximity to skilled non-union labor, immediate access to rail transportation, land for expansion and central location relative to the markets served, make it an ideal location from which to maintain and expand Quad's directory printing operations. The shipping volume capacity engendered by the private rail spur allows for 'just-in-time' operations and minimizes the area needed to store materials, thereby freeing up space for profit-generating printing equipment.

Quad/Graphics' Customer Base
JCP, Office Depot, Sports Illustrated, Staples, Hearst Corporation, Havertys, Rolling Stone, J. Crew, People, GQ, Coldwater Creek, Simon & Schuster, Rodale, Allure, Veranda, Shopko, Lucky Magazine, Woman's Day, Time, National Geographic, Self Magazine, InStyle, Runner's, CVS, Yellow Book USA, Condé Nast, Target, Victoria's Secret, Williams-Sonoma, Orvis.

Brands listed are the customer base of Quad/Graphics, Inc. and are in no way related to Griffin Capital Securities or Griffin Capital Essential Asset REIT, Inc.

Quad/Graphics | Regional Directory Printing Facility

Loveland, Colorado

PROPERTY AT A GLANCE

Property Type: Office/Industrial
Square Footage: 169,816

Lease Expiration: July 31, 2022
Renewal Option(s): None
Rent Increase(s): August 2020 – 3.0%, August 2021 – 3.0%
Tenant: World Color (USA), LLC wholly owned subsidiary of Quad/Graphics, Inc.
Website: www.qg.com
NYSE*: QUAD

Disclosure: *Stock ticker symbol is for Quad/Graphics, Inc., the guarantor of the lease.