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Trammell Crow Refinances Northern California Logistics Center

Trammell Crow secures $70M to refinance a 606K SF logistics hub in Tracy, as investors bet on the region’s long-term industrial growth.
Trammell Crow secures $70M to refinance a 606K SF logistics hub in Tracy, as investors bet on the region’s long-term industrial growth.
  • Trammell Crow Company secured a $70M refinancing loan for the Tracy 205 Logistics Center, a 606K SF industrial facility in Tracy, California.
  • The Northern Central Valley industrial market has cooled since 2023, with no new construction in Tracy since 2022. However, the region’s 6.6% vacancy rate remains below Stockton’s 9.3%.
  • Recent transactions signal renewed investor interest, with Rockefeller Group and WPT Capital Advisors making significant industrial real estate moves in the region.
Key Takeaways

A Strategic Refinancing Move

According to CoStar, Trammell Crow Company, a global real estate developer owned by CBRE, has secured over $70M to refinance a logistics center in Northern California. The financing was provided by real estate investment manager Barings.

The Tracy 205 Logistics Center is a 606K SF distribution facility on 30 acres at 1269 E. Grant Line Road in Tracy, California. It sits at the crossroads of three major trucking routes: Interstate 205, Interstate 580, and Interstate 5.

The center was completed in 2023, at a time when Tracy was a booming industrial market. However, rising interest rates and e-commerce slowdowns have cooled demand, leading to a slowdown in new industrial construction.

Industrial Market Slowdown

Tracy was once one of the most active industrial leasing markets in the Western US Developers built over 1M SF of space there between 2015 and 2023. Across the Northern Central Valley, more than 56M SF of industrial space was added over the past decade.

However, demand slowed in 2023 and 2024, leading to a halt in new developments. Since 2022, no new industrial properties have broken ground in Tracy. Even so, the city’s 6.6% vacancy rate remains lower than the 9.3% rate in nearby Stockton.

Despite this slowdown, Tracy’s 6.6% vacancy rate remains healthier than Stockton’s 9.3%, suggesting demand still outpaces supply in this submarket.

Signs of a Market Rebound?

Despite the slowdown, investor interest is returning. The Rockefeller Group recently announced a 442K SF industrial project in Antioch, California. In late 2024, WPT Capital Advisors paid $132.5M for three industrial buildings in Richmond, California.

What’s Next?

The industrial real estate market in Northern California has entered a period of adjustment, but investor interest suggests that demand could stabilize. While new development remains on hold, refinancing deals like this one indicate optimism for long-term recovery in key logistics corridors like Tracy.

CBRE’s Mike Walker and Brad Zampa structured the five-year loan with Barings, while Trammell Crow’s Adam Voelker and Will Parker led efforts on the ownership side.

While industrial construction remains at a standstill in Tracy, investor optimism and strong fundamentals could spur renewed activity in the coming years and strong fundamentals could spur renewed activity in the coming years.

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