Michelin, RLCold, Ross Add 3M SF at Wonderful Logistics Center in California

Michelin North America, cold storage developer RLCold and Ross Stores have committed to more than 3 million square feet of new industrial development at Wonderful Logistics Center in Shafter, California, according to an October 15 announcement from developer Wonderful Real Estate Wonderful Real Estate via GlobeNewswire.

What Happened

Wonderful Real Estate, a subsidiary of The Wonderful Company, announced a set of land sales, building sales and leases at its master-planned logistics campus about 100 miles north of Los Angeles Wonderful Real Estate. Several of the deals closed in September, and together they account for more than 3 million square feet of new construction and occupancy. The company said the activity is expected to generate a total economic impact of nearly $1 billion, counting real estate value, jobs, tax revenue and related spending Wonderful Real Estate.

The Deals

• Michelin North America. The tire maker bought 100 acres in September and plans three warehouse and distribution buildings totaling more than 1.6 million square feet. The release said the parties moved from a signed purchase and sale agreement to the start of construction in about two months. Per-building sizes were not disclosed.
• RLCold and Lactalis. Atlanta-based cold storage developer RLCold bought more than 20 acres in September for a 317,000-square-foot cold storage facility that will be leased long term to dairy company Lactalis.
• Global technology and e-commerce company. An unnamed company bought 5104 Express Avenue, a newly built Class A facility of 1,088,047 square feet. It is the buyer's third site on the campus, bringing its owned and occupied space there to about 5 million square feet.
• ofi. Olam Food Ingredients, a subsidiary of Singapore-based Olam Group, leased 350,000 square feet, including 4,400 square feet of office space, at 3602 Fanucchi Way. That 1.1-million-square-foot building was developed in 2023 and also houses CJ Logistics and Smucker's. ofi used a short-term lease for 190,000 square feet in an adjacent building in the interim.
• Ross Stores. Ross signed a 10-year lease in September for a 250,000-square-foot expansion of its 350,000-square-foot facility at 3501 Zachary Avenue. Wonderful Real Estate is building the expansion, with delivery expected in the third quarter of 2027. Ross already occupies 4.6 million square feet across three buildings on the campus.
• Speculative space. A 1-million-square-foot speculative building at 2902 Express Avenue is under construction.

All of the deal details above come from the company's announcement Wonderful Real Estate. The release did not name general contractors, architects or construction values for the individual buildings, and Bisnow reported that sale prices and lease rates were not disclosed Bisnow. Bisnow described the 350,000-square-foot tenant as a UK-based food and beverage company, while the developer's release identifies it as ofi.

"By working closely together, we were able to move from a signed purchase and sale agreement to the start of construction in just two months," Joe Vargas, president of Wonderful Real Estate, said of the Michelin deal Wonderful Real Estate.

About the Campus

Wonderful Logistics Center is a 2,250-acre master-planned campus with more than 17 million square feet in operation and about 50 million square feet planned at full buildout Wonderful Real Estate. The release also refers to about 4,000 acres at full buildout, so the 2,250-acre figure appears to describe the current campus rather than the final footprint. Bisnow, in its October 13 report on the same deals, described a 1,700-acre campus with 40 million square feet planned Bisnow, so the published figures vary. The site is described as fully entitled, and buildings there range from 100,000 square feet to more than 2 million square feet.

Transportation is a central part of the pitch. The campus has BNSF mainline connectivity and onsite rail, an operating inland container depot and a developing zero-emission truck corridor, and it sits near Highway 99, Interstate 5 and Highway 58 Wonderful Real Estate. An inland rail terminal is expected to begin domestic and international service in 2027. The release did not name an operator or give terminal capacity.

The company said 23 corporations, including multiple Fortune 100 companies, support about 13,000 jobs on the campus today. At full development it projects more than 30,000 jobs and about $175 million a year in tax revenue Wonderful Real Estate. The Wonderful Career Center has trained more than 750 residents since 2022, and a new onsite health clinic is expected to open in fall 2027.

How It Is Financed

Development at the campus is self-funded from The Wonderful Company's balance sheet, according to the release. Wonderful Real Estate and its affiliates have invested almost $2 billion in real estate since 2008 and are developing three business parks totaling more than 2,200 acres in California's Central Valley Wonderful Real Estate. Self-funding means speculative buildings such as 2902 Express Avenue can move without waiting on outside construction lenders, which is a meaningful advantage in a tighter credit market.

Why It Matters

The announcement is a useful read on where large distribution and cold storage users are placing new capacity. Inland sites with rail, interstate access and room to grow are competing directly with coastal markets for big-box space. Vargas said the long-term investments by multiple global companies demonstrate that the Central Valley can compete for and win "the most sophisticated logistics operations in the world" Wonderful Real Estate.

The mix of buyers also stands out. Michelin, RLCold and the e-commerce company bought land or buildings rather than leasing, which signals long-term commitments to the location. That pattern fits the broader industrial picture, including the $500 billion in U.S. factories under construction that will need warehouse and distribution support as they come online.

Implications for Owners, Developers, Contractors and Subs

• Speed to construction is a selling point. A two-month path from purchase agreement to groundbreaking requires entitled land, ready infrastructure and design and permitting teams already in place. Owners who can offer that certainty are winning tenants.
• Cold storage remains specialized work. The 317,000-square-foot RLCold building for Lactalis will call for insulated panel, refrigeration, specialty floor and controls trades that are in demand nationwide.
• Expansions of occupied buildings add complexity. The Ross project attaches 250,000 square feet to a working facility, which means phasing and coordination around live operations.
• Rail served sites add scope. Rail spurs, container yards and terminal infrastructure bring civil and heavy work that conventional warehouse parks do not.

What to Watch

• Construction progress on Michelin's three buildings and the size of each.
• Leasing of the 1-million-square-foot speculative building at 2902 Express Avenue.
• Start of service at the inland rail terminal in 2027.
• Delivery of the Ross expansion in the third quarter of 2027.

Bottom Line

More than 3 million square feet of new commitments at Wonderful Logistics Center show that well-located, rail-served, entitled industrial land is still drawing major users, and that owners able to move from contract to construction quickly are the ones landing them.

Related Coverage

• $500B in U.S. Factories Under Construction as $3.4T Pipeline Waits
• U.S. Industrial Construction Pipeline Ticks Back Up as Market Stabilizes in 2026
• LEGO Breaks Ground on $366M Virginia Distribution Hub

Image credit: Wonderful Real Estate, Wonderful Logistics Center near Bakersfield, California. Image from the source article.

Sources

• Wonderful Real Estate via GlobeNewswire, "Global Industry Leaders Choose Wonderful Logistics Center, Fueling More Than 3 Million Square Feet Of New Industrial Development": https://www.globenewswire.com/news-release/2026/10/15/3381691/0/en/global-industry-leaders-choose-wonderful-logistics-center-fueling-more-than-3-million-square-feet-of-new-industrial-development.html
• Bisnow, "Wonderful Real Estate Inks Major Land Deals, Sells 1M SF Facility Near Bakersfield": https://www.bisnow.com/news/san-francisco/industrial/wonderful-real-estate-inks-major-land-deals-divests-1m-sf-industrial-facility-in-shafter