The downtown area of Tulare is seen in this aerial photo. A Chicago development company is making a big investment in the Tulare County city for industrial space. Adobe Stock image.

A multi-million-dollar land investment from a Chicago development company seeks to capitalize on demand for industrial space in the South Valley.

CA Ventures’ industrial arm — CA Industrial — purchased 76 acres of open land in Tulare to build up to 1.1 million square feet of logistics space.

The plan is to break ground in December on the first building, which will be approximately 540,000 square feet at the southwest corner of Paige Avenue and South I Street, according to William Lu, executive vice president and market officer for CA Industrial.

The company’s goal is to deliver the building in the fourth quarter of 2023. The site is fully entitled, Lu said.

If the tenant wants to expand, the total footprint could be as much as 1.1 million. If a tenant doesn’t want an expansion, CA Industrial would build a second building of comparable size, Lu said.

They have the option to purchase the adjacent 80 acres.

Based on documentary transfer tax filed with the Tulare County Assessor’s office, the sale price is around $10.8 million, though Assistant Assessor Amy Hendrick said there could be other factors at play.

“Because the price seems high for that area, it could have included items or consideration in addition to the land that we are not yet aware of,” Hendrick said in an email. Hendrick was hesitant to confirm it as the true sales price, saying “it is the best information available currently.”

Those with CA Ventures would not disclose sales price.

Lu said Central Valley south is a growing market for logistics and warehousing.

 

 

“In addition to a strong agricultural/food production and distribution base of occupiers, Tulare and the immediate surrounding area provide a unique shipping advantage over the rest of California’s major industrial markets and has become a hub for business-to-consumer and business-to-business companies wanting to service their customers with one-day delivery,” Lu said in an email.

From Tulare, one-day delivery services could reach nearly every zip code in California, Lu said.

He expects prospective tenants to be those looking to service all of California and “significant parts” of Nevada.

CA Industrial is contracting with Chicago-based Jones Lang LaSalle for brokering and marketing the building. Tenants would be able to customize the facility, layout and sizing.

Lu said the City of Tulare has been “exceptionally easy to work with, granting us the ability to purchase a fully entitled site with a targeted groundbreaking December 2022.”