Industrial real estate developer Prologis, Inc. (NYSE:PLD) broke ground on the Prologis International Park of Commerce in Tracy, CA.
At full build-out of 19 million square feet, the park will be the largest master-planned development in Northern California.
The location makes it exceedingly desirable, with three international airports within a 60-mile radius, along with BNSF intermodal and UP intermodal, and the Ports of Oakland and Stockton. Not to mention direct access to the Bay Area’s 7.4 million population with adjacency to I-5, I-205 and I-580.
The reason it hasn’t been developed until now was because a big part of it (over 1,000 acres) was the Cordes Ranch fronting I-205. It’s an ideal location for logistics projects serving the Bay Area, but the mix of different property types made it virtually impossible for developers to push it through the entitlement process.
San Francisco-based Prologis, the world’s largest developer of industrial real estate, was able to do it because of their long history of developments and projects favoring Tracy, including the announcement last year that they would build a massive fulfillment center for Amazon in the Prologis Park Tracy Phase II development.
Amazon’s decision to locate the 1.2 million-square-foot fulfillment center in Tracy brought more than 1,000 jobs and a flood of interest from other businesses expressing interest in Tracy.
Now Prologis is moving ahead with the International Park of Commerce as a logistics hub for the region. The company managed to get the City of Tracy to annex 1,780 acres fronting I-205 for the project (including the Cordes Ranch), and create entitlements for 30 million square feet of development.
Prologis has been granted a 25-year development agreement for 1,200 acres out of the total land annexed. The company agreed to pay the City $5 million within three years of annexation for funding community benefit projects of the City Council’s choice.
Tracy City Manager Troy Brown said in a statement that the Prologis International Park of Commerce puts Tracy economic development and job creation in an unprecedented position. Brown added that they anticipate 36,000 new jobs at the park as it reaches build-out.
Tracy Mayor Brent Ives likewise noted that the desirable location of the park will allow Bay Area companies to leverage San Joaquin County’s resources, and it will allow many residents to improve their quality of life by ending daily commutes and securing a job in Tracy itself.
The first building in the Prologis International Park of Commerce will be built to LEED specifications, and designed to be one of the advanced of its kind in the United States.