Morgan Stanley Acquires KC Ace Hardware Facility for $159M

Morgan Stanley Investment Management, through investment funds managed by Morgan Stanley Real Estate Investing, acquired a newly developed 1.5 million-square-foot distribution facility in Kansas City, Missouri, for $158.5 million.

The property was acquired from Hunt Midwest, which developed the logistics facility as a build-to-suit in 2025, the first phase of KCI 29 Logistics Park. The facility is subject to a long-term net lease with Ace Hardware. The property was acquired through an off-market transaction facilitated by Mark Long and John Hassler of Newmark Zimmer.

“This acquisition reflects our continued conviction in high-quality net lease investments that combine strong tenant credit, mission-critical operations and institutional-quality real estate,” said David Gross, Managing Director at Morgan Stanley Real Estate Investing.

The Ace Hardware facility is located within KCI 29 Logistics Park, a 3,300-acre megasite, which will support up to 20 million square feet of industrial facilities. Measuring a half mile from end to end, the new facility is the largest distribution center in Kansas City by building footprint.

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Newmark ZimmerHunt Midwest

About Jasmine Kilman

Jasmine Kilman is Content Director of Connect Commercial Real Estate, covering Chicago and greater Chicagoland, the Midwest, Seattle, and the Pacific Northwest. She covers industry trends, transaction deals, market research, and produces daily news stories. With experience in marketing and communications for academic nonprofits and corporate clients, including Hearst Media, Hilton, and Coldwell Banker, Kilman has written about commercial real estate, environmental, social, and corporate governance (ESG), technology, healthcare, and philanthropy. She was born and raised in California and graduated with a degree in public relations. In her spare time, Kilman enjoys hiking and traveling to new locations with her family.

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