Morgan Stanley Investment Management, through investment funds managed by Morgan Stanley Real Estate Investing (MSREI), has acquired an industrial outdoor storage facility in Southern California for approximately $92 million. The property is subject to a long-term, absolute triple net lease with Oldcastle Infrastructure, a subsidiary of building materials company CRH plc.
“This acquisition exemplifies MSREI’s strategy of sourcing and securing institutional-quality net lease investments in core logistics markets,” said Will Milam, head of U.S. investments at Morgan Stanley real Estate Investing. “The IOS facility is a mission-critical asset for Oldcastle and a cornerstone for regional infrastructure supply.”
Located in Fontana, Calif.’s Southwest Industrial Park, the rare 26-acre parcel is unique in scale, with virtually no comparable IOS parcels available in the region. Oldcast has operated at this location for over 30 years.
“By shifting property expenses, taxes and manteanings obligation to the tenant, net lease structures mitigate real estae owners’ exposure to volatility and unexpected costs, making net lease cash flows among the most predictable in real estate,” said Lauren Hochfelder, co-CEO of MSREI. “Beyond the benefit of net lease, we expect U.S. industrial to benefit from the continued supply chain realignment, including increased on shoring of manufacturing.”
