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TRACY, CA-Regency Centers, a national owner, operator and developer of grocery-anchored shopping centers, has finally broken ground on a $20 million shopping center project that has been in the planning stages for three years.

Corral Hollow Shopping Center, a 169,352 SF center, is scheduled to be complete by March of next year. The center is located at the intersection of Corral Hollow and West Eleventh Street.

Tom Engberg, senior vice president of investments for Regency’s northern California branch, tells GlobeSt.com three major tenants anchor the shopping center. All three have signed long-term leases. Safeway has signed a lease for 65,712 SF, Orchard Supply Hardware committed to 49,103 sf, and a third major tenant has negotiated a deal for 21,849 sf. The third tenant will be announced after the lease is signed next week.

An additional five tenants have signed leases, including Starbucks, ERI Real Estate and Jack In the Box, leaving only 21,849 SF available to be rented. Regency Centers is handling the development and leasing of the property in house, and has funded the property to be built for cash. The construction is out to bid at this time.

Regency has been looking at this property for three years and run into several problems, including engineering and environmental issues, regulatory obstacles and a litigation problem. Tracy is considered a growing community because of its reasonable real estate rates and proximity to San Jose and Silicon Valley. This presents a huge demand for retail opportunity.

“Tracy is a bedroom community serving the 580/680 corridor in the Silicon Valley area,” said Tom Engberg. ” There’s a lot of growth and a lack of shopping alternatives to meet that growth. The location and room for growth are the main things that attracted us to Tracy.”

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