TRACY, CA-GlobeSt.com exclusively learns that the Tracy Gateway Project, a 500-plus-acre, master-planned, mixed-use development project, located in the Northern California town of Tracy, has received approval for Phase I. The project consists of three phases, entitled for six million square feet of development.
The development will include a 299-bed hospital, 500,000 square feet of retail, 400,000 square feet of medical office, a 250-room hotel, and several million square feet of “campus” type commercial office, with lakes, landscaping and infrastructure therewith.
Phase I will cost $300 million, according to the Carlton Group Ltd, who is arranging the financing for the project. Future phases will be funded, in part from the profits generated in the first phase, ultimately exceeding $1 billion.
Philip Powers, managing director of Carlton Advisory Services Inc., tells GlobeSt.com that Carlton is “excited about the opportunity to provide the financing for this and future phases of the project.” He adds that he “expects to have the financing circled shortly with one of several investors who have indicated strong interest,” but he couldn’t comment further at this time.
The development team includes developer Jerald Schutte of T G Associates, who has spent the past 25 years developing value-added property types, both in raw land and in existing commercial properties. The architect is MBH Architect’s Northern California-based offices, and the contractor is Norm Barnes’ family and his current company, SN Barnes.
The master plan is intended to be built over a 10-year period, with the first phase involving a five-year timeline to develop both the site infrastructure and the first 200,000 square feet of medical office buildings, 450,000 square feet of commercial office, 350,000 square feet of retail and a 250-room, four star hotel.
While Phase I is envisioned to cover approximately five years and be completed in two parts. The first 12 to 15 months of the project will involve finishing on- and off-site infrastructure, including curbs, gutters, streets and utilities, as well as developing plans and getting permits for the first phase of vertical development.
The second step will involve the next 36-plus months and will be spent building out the permitted structures mentioned above, while procuring additional permits and further constructing the next 100,000 square feet of medical office, 250,000 square feet of commercial office, 175,000 square feet of retail, and the 250-room hotel.