Prologis pays $47 Million for two Stockton buildings

Prologis pays $47 Million for two Stockton buildings

Central Valley Business Times

June, 29, 2018

  • The seller is CT of Newport Beach
  • “Reflect the high demand for world-class logistics facilities in major distribution markets”

Newport Beach industrial developer CT says it has sold two newly-constructed buildings at its NorCal Logistics Center in Stockton. to Prologis for $47 million. The two buildings total 575,127 square feet and mark the initial completion of CT’s three-building Phase I development of the larger 4.4 m

Prologis (NYSE: PLD), the largest owner of industrial space in the U.S., paid approximately $82 per square foot for the buildings, which were unleased and in shell condition at closing.

CT was represented in the sale by Kevin Dal Porto, Blake Rasmussen and John McManus of Cushman & Wakefield; Prologis was self-represented.

“These transactions reflect the high demand for world-class logistics facilities in major distribution markets nationwide,” says Carter Ewing, managing partner of CT. “In this case, the transaction allows Prologis to enjoy a fair profit on their investment going forward while providing CT with a sizeable return and well ahead of schedule – a true win-win.”

NorCal Logistics Center is home to General Mills, KeHE Foods, Allen Distributors and Fox Head, and is in the heart of California’s Central Valley, a 185 million-square-foot industrial market. The region is an extension of a global logistics supply chain infrastructure directly linked to West Coast ports in  Stockton, Oakland, Los Angeles/Long Beach, Portland, Oregon and Seattle/Tacoma, Washington.

CT purchased the 345-acre industrial site for NorCal Logistics Center in May 2017 and has now completed the first phase development, including a third 1,122,341-square-foot building, one of the single largest speculative industrial buildings in Northern California.

The second phase of development will begin toward the end of 2018 and include three buildings totaling approximately 1.6 million square feet of space, the company says.


Published On June 27, 2018 – 10:59 AM
Written By David Castellon,

The Visalia Planning Commission has approved a revised conditional use permit to allow construction of a four-story hotel off Plaza Drive and Highway 198.

Under the amended application, the 86-room Hilton Home 2 Hotel would be part of the 25-acre Square at Plaza Drive just north of the freeway, an area that already has a hotel and an ARCO AM/PM convenience store and gas station under construction and already includes two car dealerships and a Fresno Pacific University satellite campus.

The new hotel’s architect, Steven L. Keike, had requested the Planning Commission allow a change in the location of the building to the northwest corner of North Plaza Drive and West Crowley Avenue, and the commission on Monday approved it.

In a separate matter, the members also voted to approve a conditional use permit allowing Brandman University to build a new, 7,071-square-foot building for classrooms and administrative space near the Square at Plaza Drive, within the Plaza Business Park.

Brandman officials intend to vacate the 18,240-square-foot building they now occupy in the Visalia Marketplace Shopping Center, next to the city’s Kmart department store, and move into the smaller site, according to a Planning Commission report.


Published On June 15, 2018 – 11:40 AM
Written By Edward Smith, Staff Writer

On June 16, Macy’s in the Visalia Mall officially unveiled its newest addition—the off-price retail brand Macy’s Backstage.

Macy’s celebrated the event with a DJ, photo booth and food vendors, as well as giveaways throughout the day and scratch-off tickets for the first 200 guests with prizes for the grand opening, according to Raul Diaz, store manager. The ribbon was cut at 9:50 a.m., shortly before the store opened.

Over the course of only a month, the clothing retailer transformed 14,000 square feet of its second floor to the company’s newest foray in the fight against slipping sales by introducing “the thrill of the hunt” into its shopping experience.

Off-price retailers often work by ordering clothes in volume and out-of-season to sell them at a deeper discount. In the case of Macy’s Backstage, a whole division with its own executives was dedicated to not only shipping but ordering as well. The project began in 2013 with 60 stores, according to Joy Deinla, media relations director at Macy’s and in 2018, it will open 100 new stores across the nation.

The store looks like a Ross or Marshalls with racks of discounted men and women’s clothing, footwear, handbags, even furniture and toys.

“For us, it’s about the thrill of the hunt,” said Diaz. There are brands familiar to Macy’s shoppers as well as brands exclusive to the Backstage division of the company that shoppers can search through to discover those rare finds.

“If there is a brand that matters most to this community, we have the opportunity to communicate that,” Diaz said.

This all comes as stores like Macy’s and JCPenney have been falling in terms of sales with the rise of online competition.

In fiscal year 2012, Macy’s generated $26.4 billion in revenue which represented 5.6 percent growth for the year, according to the stock analysis website, That percentage fell each year, bottoming out in fiscal year 2017 to $24.837 billion, down 3.7 percent compared to FY 2016, according to Business Wire.

“Department stores have not been performing well over the last five to seven years,” said Farla Efros, president at Illinois-based HRC Retail, who advises both healthy and unhealthy companies on business strategies. “It’s been a slow burn and has heightened over the last two to three years when debt repayment started to become an issue.”

Last year, Macy’s closed 70 stores across the country and has closed 156 locations since 2008, with another 11 coming closures announced for this year, according to a June 8 article in the Buffalo News.

Part of the problem has to do with competition. Beauty sections have been affected by competition from smaller and sleeker Ulta and Sephora brands while online shopping has affected all ends of the business.

“Because they’re not vertically integrated, they don’t really make that much of their own product,” Efros said. “All of that product is available on Amazon.”

To turn that around, the store hopes to use customer experience to bring people in. The ability to feel the clothes and hunt for bargains is an incredible magnet.

Being able to touch and feel the clothes is a major draw, said Diaz. Also, sifting through racks is a big part of getting people in the stores.

It’s about the treasure hunt. Efros calls it the “fear of missing out,” and its something that Costco and TJ Maxx have done incredibly, she said.

“I need to keep going back there because you never know what I can get,” Efros said. “I can get some incredible branded products for next to nothing.”

Macy’s hopes to bring that same sense of shopping urgency into its main-box stores. It began its off-price retail as stand-alone stores, but they see the store-within-a-store model as supplementing its main store, and according to Deinla, they’ve done so without cannibalizing sales from downstairs. They’ve seen an average of 7 percent growth in stores with a Backstage, said Deinla.

The off-price model is something familiar to Visalia. The TJ Maxx opened in 2013 and Home Goods opened at the end of 2015.

“Macy’s is also trying to reach that smart shopper,” said Gail Zurek, president of the Visalia Chamber of Commerce.

Coming to Visalia was a smart move in her eyes. The percentage of disposable income is high, said Zurek.

While the number of rooftops may be significantly fewer, retail sales per capita are much higher, with $14,744 in Visalia compared to $9,619 in Fresno, according to 2012 U.S. Census data.

The average median household income from data between 2012-2016 is $52,099 in Visalia compared to $45,963 in Fresno.

While smaller retailers may not have access to the ordering volume that can create the kind of sales that consistently draw in customers, there are three lessons to learn as the Macy’s story unfolds.

Department stores took on high interest loans that even improved sales are having trouble repaying. Efros cited Neiman Marcus who may have had a 6 percent comparative increase, but its high interest loans offset its ability to make money.

The second is real estate. “You don’t want to open too many stores,” Efros said. “You lose the customer experience that you had and you lose the control that you had as well.”

Lastly, as small businesses grow in this economy, they need to stay focused and understand who their customer is. “Sometimes you get executives come in with a different vision about who their shopper is,” said Efros. “That is what happened with JCPenney.”

One differentiating factor is that customer experience for small companies is more inherent in the business model.

“Smaller companies should focus on service and exclusivity versus price,” Efros said.

Essendant takes occupancy at Wonderful Industrial Park

Wonderful Industrial Park Press Release

May 2018

Essendant took occupancy of their 405,000 sf build-to-suit facility in May 2018. Essendant was looking to implement a new distribution strategy and sought out a facility that would allow them to distribute from North Los Angeles to the Bay Area. The newly implemented strategy allowed Essendant to consolidate several smaller faciliti

es into one large regional center.  Essendant was attracted to Wonderful Industrial park because of its access to an abundant, high quality labor force as well as Wonderful Real Estate Development’s ability to deliver a complex build-to-suit facility within a year of executing the lease.

Wonderful Real Estate Development also completed construction on its 1 million sf spec building, 4100 Express Avenue, in May 2018. The building features 300-foot truck courts, 700 trailer parking stalls, 183 dock-high doors, eight-inch slab designed to meet multi-level e-commerce uses, roofing that can accommodate 2.25MW of solar and a high-speed fiber optics network. Wonderful’s newest space also features 40-foot clear heights and well-spaced columns to allow for automated picking systems and highly efficient racking, as well as customizable office and mezzanine spaces. Please contact Joe Vargas ( or Erin Poulson Morris ( at Wonderful Real Estate Development for more information.



Barry Zoeller

News Press Release




Dollar General leases additional space in new industrial building developed by Tejon Ranch Co. and Majestic Realty Co. 

TEJON RANCH, Calif. (March 26, 2018) – The partnership of Tejon Ranch Co. (NYSE: TRC) and Majestic Realty Co. today announced major discount retailer Dollar General (NYSE: DG) is leasing more than 240,000 square feet of warehouse space in a new building the partnership developed at the Tejon Ranch Commerce Center (TRCC). Dollar General will use the new facility to support its operations in California.

Dollar General currently operates out of a separate building at TRCC, and with the expansion, will be increasing its footprint by nearly 40 percent.

“We are happy for Dollar General’s success in California and are pleased the Tejon Ranch Commerce Center is able to meet the company’s need for additional distribution space,” said Joseph N. Rentfro, executive vice president of real estate at Tejon Ranch Co. “Dollar General’s decision to expand here underscores Tejon Ranch’s value as proven and opportune place for companies wanting to locate and/or expand in California.”

“Majestic Realty is proud to welcome Dollar General as the inaugural tenant of the first building developed in partnership with Tejon Ranch Co.,” said Brett Tremaine, senior vice president at Majestic Realty Co. “This is just the beginning, as we believe the Tejon Ranch Commerce Center’s strategic location and outstanding labor pool will prove to be advantageous for many more companies in the future.”

Dollar General has used the Tejon Ranch Commerce Center as the hub of its California distribution operations for the last six years. With its expansion into the new Tejon Ranch-Majestic Realty developed facility, it will now occupy a total of more than 850,000 square feet of space within TRCC.

“It makes perfect sense for Dollar General to expand its operations at Tejon Ranch,” says John DeGrinis, SIOR, Senior Executive Vice President of Colliers International, who represents TRCC.  “Its central location directly on Interstate 5 allows them to serve stores in both northern and southern California; the large pool of employees with a great work ethic has led to a stable workforce with a low turnover rate; and the fact that total operating costs are among the lowest in the state, all add up to some pretty compelling reasons why TRCC represented a great opportunity for Dollar General,” he added.

The Tejon Ranch Commerce Center is Tejon Ranch Co.’s 1,450-acre master planned commercial/industrial development located at the junction of Interstate 5 and Highway 99, about an hour north of the Los Angeles basin.  The Commerce Center is also home to major distribution centers for IKEA, Famous Footwear and Caterpillar Inc. (NYSE: CAT).

An additional 240,000 square feet of space is available in the new building to be occupied by Dollar General.  The building is a Class A cross dock industrial building featuring a 36-foot clear height, seven-inch floor slab and an ESFR sprinkler system.  Overall, the Tejon Ranch Commerce Center has nearly 16 million square feet of entitled space available for sale, lease or build-to-suit, with sites ranging from 20,000 square feet to more than 2,000,000.  All of the industrial sites at TRCC are included in Foreign Trade Zone #276, and additionally, companies locating there are eligible to apply for tax rebate incentives being offered by Kern County.

Old Town Clovis becoming a hot spot for tiny homes. Others come to see how it’s done

Updated June 24, 2018 09:06 AM

Stockton port will get state’s first mobile power station

The San Joaquin Valley Air Pollution Control District is partnering with a maker of zero-emission off-road technologies to deploy the state’s first mobile power stations at the Port of Stockton, officials announced last week, a move that will boost air quality around the port and improve public health.

“This project is a great example of how the cap-and-trade program is fighting climate change while improving local air quality and delivering benefits to disadvantaged communities,” California Air Resources Board’s Maritess Sicat said in a statement.

The MPS is an off-road battery-electric mobile platform that offers multifunction capabilities that can replace multiple pieces of single-purpose, conventional diesel off-road equipment, the Muncie, Indiana-based DANNAR said, and will help accelerate the commercial deployment of zero-emission off-road technologies. Because ports, airports, warehouses, and logistic centers throughout California today rely primarily on diesel technologies to move, load, and unload higher tonnage loads, the project will significantly reduce greenhouse gas emissions, pollutants and diesel emissions to benefit surrounding disadvantaged communities, DANNAR officials say.

The port will be using two battery-electric 30,000-pound capacity forklifts with additional cargo handling attachments, including a multipurpose cargo truck bed and scissor-lift. ChargePoint, the world’s largest network of electric vehicle charging stations, will install two DC fast-chargers at the port to support the equipment.

Funded in part by the California Air Resources Board through California Climate Investments, the project is part of California Climate Investments, a statewide program that puts billions of cap-and-trade dollars to work reducing greenhouse gas emissions, strengthening the economy and improving public health and the environment — particularly in disadvantaged communities.

The cap-and-trade program also creates a financial incentive for industries to invest in clean technologies and develop innovative ways to reduce pollution. At least 35 percent of these investments are made in disadvantaged and low-income communities.

“The San Joaquin Valley Air Pollution Control District is excited to support the deployment of zero-emission off-road equipment in our effort to reduce mobile source emissions, which remain the largest source of pollution in the Valley,” the San Joaquin Valley Air Pollution Control District said in a statement.


Central Valley may buck California’s economic decline


  • Economists say state’s economic growth to slow
  • “Attitudes and policies are friendlier to development and growth” in the Central Valley

Central Valley Business Times

June 21, 2018


The California economy appears to be sidelined while the broader U.S. economy is accelerating, according to a new report released Wednesday by the California Lutheran University Center for Economic Research and Forecasting.

Its current forecast anticipates annual growth in California’s real GDP of 3.2 percent in 2018 and 2.7 percent in 2019. At the current growth premium could vanish within the forecast horizon, the report says.

But Central Valley growth has picked up to the point of being greater than the state’s growth in 12 of the past 13 months and is increasing at a rate substantially faster than the nation.

“Attitudes and policies are friendlier to development and growth” in the Central Valley, the report says. The economic outlook for the nation continues to be strong relative to the pre-corporate tax reform environment. “We expect growth of the U.S. economy to average 2.7 percent in both 2018 and 2019, better than all but one year since the Great Recession,” says the report.

“We view the unemployment rate as a flawed measure of labor market strength,” the report says. “The civilian labor force participation rate stands at a low not seen since 1978.

Crisis era policies that continue to unincentivize work nearly a decade after the financial crisis have driven millions of working-age  Americans out of productive economic activity. The U.S. economy cannot return to robust economic growth as long as vast amounts of human capital remain on the sidelines of the economy.”

The March 2018 forecast marked what appeared to be a turning point in the economic outlook for California. “In March, we wrote: ‘We are currently forecasting a convergence in the economic fortunes of California and the nation. While California has historically grown at a rate that is significantly higher than the nation’s, 2017 may have marked a turning point…. While growth was accelerating around the country, it appeared to slow down in California. We are forecasting that this dynamic continues in the years ahead. It is even possible that the growth premium maintained by California may vanish altogether,” writes economist Matthew Fienup.

Because California competes with other regions for the opportunity to host high value-added business activity, other regions can develop a competitive advantage by cultivating pro- business policies, says the CERF report.

“Eventually, businesses of many different kinds will begin migrating to these favorable environments,” it predicts. “Early evidence of this dynamic was provided by California’s world-renowned movie industry — or should we say, Georgia’s world-renowned movie industry,” Mr. Fineup writes.

“So much production in the movie business has already fled California in search of lower-cost regions that California now ranks behind the UK, Canada, and current industry leader Georgia. The exodus of jobs and output in this iconic California industry is actually part of an economy-wide exodus that has accelerated in recent years.”

The apparent slow-down of California’s economy noted in the March publication coincides with a significant increase in net domestic out-migration, the report says.

“Households and individuals, dominated by younger, working age adults, are fleeing California in increasing numbers. In March, the coincidence of these two patterns led us to wonder if the convergence that we have been anticipating between California’s economy and the nation’s might finally be imminent.

“With the advent of this forecast publication, the situation seems a little different than what we observed last quarter, although the fundamental story is unchanged. Most notably, there has been a significant upward revision to California’s growth number for 2017.

The initial estimate of 2.7 percent growth in real GDP has been revised upward to nearly 3.0 percent. That is to say, economic growth was flat between 2016 and 2017, rather than decreasing as we previously thought.”

Even with the revisions, the CERF economists say that the slowdown of California’s economy relative to the nations is real. “We have repeatedly described housing markets in the United States and California as one characterized by restricted supply.

Not only are housing starts low as economic expansions go, but they are lower in this expansion than they were in previous recessions,” writes CERF economist Dan Hamilton.

While housing sales have risen from the depths of the recession, they are still relatively low, although not as dismal as housing starts. This is due to two main reasons: weak job growth and sustained price growth.

“To be clear, we are not saying this price growth represents another housing bubble. Price growth appears to be due to fundamentally low supply,” he says.

San Joaquin RTD picked for new PG&E electric vehicle pilot program

Central Valley Business Times

June 23, 2018

In a first for San Joaquin Regional Transit District and Stockton, Pacific Gas and Electric Company says it will conduct an electric vehicle pilot program to support RTD’s long-term electric transportation needs with chargers and infrastructure improvements.

Recently approved by the California Public Utilities Commission, this pilot will be a test case for PG&E’s new “FleetReady” program, which supports electric charging for customers with medium-duty, heavy-duty, and off-road fleets such as transit agencies, school districts, and delivery fleets.

For this new pilot with San Joaquin RTD, PG&E will test how smart charging and battery storage can lower operating costs and maximize efficiencies for the agency.

Seeking to partner with a transit agency located in a disadvantaged community which already had electric buses and plans for more in the future in order to meet the timelines of the project proposal, PG&E chose RTD.

“Because we already had a plan for adding more electric buses to our fleet and have a long-term goal around electrification, PG&E approached us with this pilot opportunity,” says CEO Donna DeMartino. “Due to our focus on electric transportation, PG&E can jump right into creating the specifics of the pilot, which aligns with our goal of being powered by 100 percent electric vehicles by 2025.”

The budget for this pilot is $3.35 million, which includes:

  • Design of the sites
  • Cost of the chargers and battery storage system
  • Construction from the electric grid to the chargers and battery system
  • Installation of the chargers and battery storage system
  • Software for charge management
  • Collection of data
  • Ongoing analysis and evaluation
  • Handbook that other transit agencies can use to learn more about electrification

10 Best Tech Startups in California-Faraday Future #4

June 11, 2018 0 Comments
The Tech Tribune staff has compiled the very best tech startups in California. In doing our research, we considered several factors including but not limited to:

Revenue potential
Leadership team
Brand/product traction
Competitive landscape
Additionally, all companies must be independent (un-acquired), privately owned, at most 10 years old, and have received at least one round of funding in order to qualify.

Looking for a badge to celebrate your awesome accomplishment? Find it here!

1. Uber

Founded: 2009

“We believe that by solving some of the biggest problems of our time, we can create a future where there is limitless freedom of movement for people and things all across the world. Just talk to our people — and feel their passion, optimism and curiosity for building solutions every single day on behalf of drivers, riders, couriers, eaters and employees.

While the tough problems we face everyday can be incredibly difficult to figure out, we believe those same problems enable us to personally grow the most. So we welcome people from all backgrounds who have the passion to change the world and also want to help create a supportive and collaborative environment. So that ultimately, we can learn together, solve together, build together, and move the world forward together.”

2. Airbnb

Founded: 2008

“Founded in August of 2008 and based in San Francisco, California, Airbnb is a trusted community marketplace for people to list, discover, and book unique accommodations around the world — online or from a mobile phone. Whether an apartment for a night, a castle for a week, or a villa for a month, Airbnb connects people to unique travel experiences, at any price point, in more than 33,000 cities and 192 countries. And with world-class customer service and a growing community of users, Airbnb is the easiest way for people to monetize their extra space and showcase it to an audience of millions.”

3. Lyft

Founded: 2012

“Wherever you’re headed, count on Lyft for rides in minutes. The Lyft app matches you with local drivers at the tap of a button. Just request and go.

Ride by ride, we’re changing the way our world works. We imagine a world where cities feel small again. Where transportation and tech bring people together, instead of apart. We see the future as community-driven — and it starts with you.”

4. Faraday Future
faraday future

Founded: 2014

“Faraday Future is a global automotive and technology company, uniting the latest in sustainable transportation and connected digital ecosystems to redefine future mobility – and move humanity forward.”

5. Pinterest

Founded: 2009

“Pinterest helps you discover and do what you love. Find recipes, style inspiration, projects for your home and other ideas to try.”

6. Wish
Founded: 2010

“Wish is a mobile e-commerce platform that connects hundreds of millions of consumers with the widest selection of products delivered directly to their doors. Our mission is to provide everyone access to the most affordable and convenient shopping experience on the planet. Wish supports 500,000 merchant partners as well as over 300 million users who rate Wish the best mobile shopping app on the iOS and Android platforms.”

7. Fair
Founded: 2016

“Fair is an automotive FinTech company that’s revolutionizing car buying by offering unprecedented freedom, flexibility and an end-to-end mobile experience.

We believe fairness matters. That’s why we’ve created a game-changing new app that lets you shop, get approved and pay for a car all on your phone with just a driver’s license and bank account. Get in-app approval for a monthly payment amount that works for you, then head to the dealership and check-out in minutes. You can drive your car for as long as you want, and return it any time you’re ready. That’s the Fair way to drive!”

8. Royole Corporation
Royole Corporation

Founded: 2013

Also honored in: 10 Best Tech Startups in Fremont

“Founded in 2012 and based in Silicon Valley, California, Hong Kong, and Shenzhen, China, Royole develops innovative display technologies and related electronic products, and provides IP licenses, services and solutions for a variety of industries associated with display applications.

Royole creates and manufactures the most advanced flexible displays, sensors, and consumer electronics. In 2014, Royole first introduced the world’s thinnest full-color flexible displays with a thickness of 0.01 mm and a bending radius of 1 mm. Royole’s display technology is expected by many industry leaders to revolutionize the smartphone and consumer electronics industry. In 2015, Royole began mass production of its proprietary flexible electronics at its production facility in Shenzhen, China. In September 2015, Royole launched and started mass production of the world’s first foldable virtual mobile theater device, Royole-X. Royole-X is an artful unison of world’s highest resolution AMOLED displays (3300ppi) and noise-cancelling headphone with its own new operating system, Royole-X OS.”

9. Instacart

Founded: 2012

“Instacart (YC S12) is building the best way for people everywhere in the world to shop for groceries. Using your phone or the web, you can order groceries and have them delivered to your door in minutes. You can choose from a variety of local stores including Whole Foods, Safeway, Costco, Mariano’s and many more, as well as being able to mix items from multiple stores into one order.

Every day, we solve incredibly hard problems to create an experience for our customers that is nothing short of magical. We are located in San Francisco, and well-funded by some of the greatest investors in the world, like Sequoia Capital, Khosla Ventures, Andreesen Horowitz, SV Angel, and Y Combinator.”

10. AppLovin

Founded: 2012

“AppLovin offers a comprehensive platform where app developers of all sizes can connect with their ideal consumers and get discovered. Founded in 2012, the company is focused on helping both indie and established developers grow, with the expertise and insights they need to finance, market, and expand their businesses – all in one place. App developers view AppLovin as a trusted partner, the rare company that understands what it takes to succeed in the mobile app ecosystem and the ability to help them reach their goals.”