Barings Provides $70M Refi for Northern California Industrial Property

Trammell Crow Company has secured $70.2 million to refinance Tracy 205 Logistics Center, a 606,000 square-foot industrial center that opened in 2023 in Tracy, Calif., Commercial Observer has learned. 

Barings provided the financing, while Mike Walker and Brad Zampa of CBRE (CBRE)’s San Francisco Debt & Structured Finance arranged the transaction. 

Jack Cheng, managing director at Barings, said in a statement that the refinancing of Tracy 205 fits with Barings’ strategy to target high quality assets, supported by experienced sponsors, in markets where supply and demand dynamics are favorable for debt investment. 

“We are excited to grow our relationship with both CBRE and Trammell Crow with the refinancing of this high-quality industrial property located in the Northern Central Valley,” said Cheung. 

Located at 1269 East Grant Line Road in Tracy — a town of 93,000 residents in the Northern Central Valley area in northern California, about 63 miles east of San Francisco — Tracy 205 Logistics Center broke ground in January 2022 and opened just over a year later. 

The cross-dock distribution facility features 40 foot clear heights, just over 4,004 square-feet of office space, and a 185 foot deep full-depth truck court. The industrial facility features easy access to Interstate-5, Interstate-205, Interstate-580 and Highway 99. 

CBRE’s Walker said in a statement that the property’s “strategic location” near the highways helped secure the financing package and noted that the Central Valley of California is increasingly important to access Sacramento and the Bay Area cities of San Francisco and San Jose. 

“New industrial facilities like Tracy Logistics Center are well-positioned to attract investors and occupiers to the market due to high barriers to entry and limited availability,” he said. 

Brian Pascus can be reached at bpascus@commercialobserver.com