Newport Beach-based Phelan Development Company has broken ground on the first phase of the North Tracy Commerce Center in Tracy located at 20500 Holy Drive in the Central Valley city, which has been growing its industrial footprint at a steady pace over the last decade. Phelan’s property will be a 981,170 square foot build-to-suit. The developer declined to name the tenant other than to say it was a multi-national importer of products in the United States, and this building will be considered an expansion for the company.
Phelan believes there are many factors that will continue to make Tracy a strong industrial market for new development opportunities. “This area is geographically advantaged with easy access to the San Francisco Bay Area and centrally located to all the West Coast markets by Interstate 5. It has a good labor pool, and it also has a price advantage relative to the Bay Area and other larger Central Valley markets,” says Dave Haugen, a regional partner for Phelan Development. He manages the Northern California market for the firm out of its regional office in Oakland.
The first phase of the new development project is projected to be finished by the fourth quarter of next year. Phelan would not disclose the development cost on the first phase, except to say that it will be using its own capital on the project. The tenant in the property will be occupying its space to send importing products into the United States for use by various regional manufactures.