The private real estate arm of Morgan Stanley Investment Management has acquired an industrial outdoor storage (IOS) facility in the US for $92m (€79m).
Morgan Stanley Real Estate Investing (MSREI) has acquired the facility in Southern California under a long-term absolute triple-net lease with Oldcastle Infrastructure.
Located in Fontana, the 26-acre facility has been occupied by Oldcastle for more than 30 years.
Will Milam, head of US investments at Morgan Stanley Real Estate Investing, said: “This acquisition exemplifies MSREI’s strategy of sourcing and securing institutional-quality net lease investments in core logistics markets.
“The IOS facility is a mission-critical asset for Oldcastle and a cornerstone for regional infrastructure supply. We are excited to partner with them to support their long-term operational needs in Southern California.”
Lauren Hochfelder, co-CEO of Morgan Stanley Real Estate Investing, said: “By shifting property expenses, taxes, and maintenance obligations to the tenant, net lease structures mitigate real estate owners’ exposure to volatility and unexpected costs, making net lease cash flows among the most predictable in real estate.
“Beyond the benefits of net lease, we expect US industrial to benefit from the continued supply chain realignment, including increased onshoring of manufacturing.”
To read the latest IPE Real Assets magazine click here.
