For more retail coverage, click GlobeSt.com/RETAIL.

YUBA CITY, CA-WM Grace Cos. and Brown Group Inc. are complementing an 18-month-old Home Depot here with approximately 350,000 sf of additional retail development. The two Phoenix-based developers recently began site work at Highway 20 and Harter Road after securing all the necessary entitlements and approvals and early commitments from several anchor and sub-anchor tenants. The leasing agent for the development, Bennett Kovac of Sacramento-based Kovac Commercial tells GlobeSt.com that in addition to the existing Home Depot, the retail center will be home to a Super Wal-Mart, Marshall's, Pier One, Petco and Bed, Bath & Beyond. In addition, the project will include 30,000 sf of shop space and about four outparcels that have not yet been leased.Kovac says the land for the $50-million project was acquired from three local farmers and the entitlement process took more than three years. "Even though there's lots of land, a lot of these communities are very tough on new retail developments," says Kovac, adding that there is no other retail-zoned location in the market that has in place the appropriate ingress and egress for such a project.Given the rapid residential development in the area, Kovac says the metro area was the next logical step for retail development after Roseville, which is 35 miles away and now home to substantial retail development, including many of the retailers now involved in the Yuba City development. Home Depot owns its parcel, as will Wal-Mart. The rest will lease. The going lease rate for sub-anchor tenants in the development is believed to be around $14 per sf for the typical 10- to 20-year commitments. The going rate for shop space will be around $2 triple net. The anticipated completion date for the project is mid-to-late 2005.