CBRE Global, Trammell Crow Invest $142M in Central Valley

The upcoming distribution facility. Rendering courtesy of CBRE

Days after announcing their 287-acre Atlanta project, CBRE Global Investors and Trammell Crow Co. have teamed up on the development of yet another logistics facility, this time in Tracy, Calif. HPA serves as the project’s architect of record, and Big-D Construction Corp. is the general contractor.

Working on behalf of one of its investment funds, CBRE Global Investors acquired a 29.3-acre site for the upcoming industrial building. According to records filed with San Joaquin County’s Recorder Office, an affiliate of Denver-based Black Creek Group sold the land parcel for $29.5 million.

The same entity, affiliated with CBRE Global Investors Acquisitions, also acquired the adjacent property on the same date, for $112 million. Records show this property—an existing warehouse—was also sold by an affiliate of Black Creek Group.

The land parcel and the existing facility—located at 1205, and 1207 E. Grant Line Road, respectively—amount to about 57.4 acres that the global investor added to its Northern California footprint. According to a prepared statement by CBRE’s Head of Americas Logistics Operator Division, Gary Jaye, the site is permit-ready and “well-positioned to meet the growing demand for high-end logistics space.”

A growing logistics hub

Trammell Crow Co. will develop the newly acquired site into a 606,343-square-foot distribution facility. The building will feature a 40-foot clear height, 185-foot truck courts, 56- by 60-foot column spacing, LED and sky lighting, as well as an ESFR system. The developer is also looking to implement ESG features, including EV charging and solar panels.

The adjacent building is a 613,100-square-foot distribution facility, constructed in 2019. This building features a 36-foot clear height, four grade-level and 117 dock-high loading doors, CommercialEdge data shows.

The Tracy location provides direct access to the Bay Area and regional access to the West Coast. Major nearby thoroughfares include interstates 5, 205 and 580. Oakland is about 54 miles from Tracy, while Sacramento is within some 66 miles. The partnership chose this location due to its “burgeoning logistics sector.” Just across the street from the new development, Amazon is expanding its operations with a new fulfillment center. The e-commerce giant already has more than 2 million square feet of logistics space in Tracy.

The development marks the third time that Trammell Crow Co. and CBRE Global Investors have partnered for a Northern California project. Trammell Crow has also announced plans to develop several other large projects across the U.S. Earlier this month, Trammell Crow and Clarion Partners broke ground on a 1.2 million-square-foot project in metro Denver, which will feature five Class A buildings. In August, the company shared plans for a second phase at its Park Aldea property in Phoenix, just one year after completing its initial phase.