Morgan Stanley Investment Management, through investment funds managed by Morgan Stanley Real Estate Investing, announced the acquisition of a significant industrial outdoor storage facility in Southern California for approximately $92 million. The asset is secured under a long-term absolute triple-net lease with Oldcastle Infrastructure, a subsidiary of CRH plc, recognized as the world’s largest building materials company.
The facility is located within the Southwest Industrial Park in Fontana, California, an area known for its concentration of logistics and supply chain operations serving the broader Southern California market. The property spans roughly 26 acres, making it one of the few large-scale industrial outdoor storage sites in the region. Industrial outdoor storage sites of comparable size and location remain highly limited, and Oldcastle has been operating from this site for more than three decades, demonstrating its strategic importance to the company’s regional operations.
The acquisition aligns with Morgan Stanley Real Estate Investing’s broader strategy of targeting institutional-quality, net-leased logistics properties in major distribution corridors. By utilizing net lease structures, the landlord transfers responsibility for taxes, maintenance, and operating costs to the tenant, resulting in more stable and predictable cash flows for the property owner. The firm also highlighted longer-term opportunities tied to the realignment of manufacturing and supply chain reconfiguration across the United States. These trends continue to shape demand for industrial and logistics real estate.
Morgan Stanley Real Estate Investing maintains a global platform with regional teams across the United States, Europe, and Asia. The business manages real estate investments across a range of strategies, including core, core-plus, value-add, and opportunistic approaches, and oversees $54 billion in gross real estate assets worldwide.
Morgan Stanley Investment Management, including its advisory affiliates, manages $1.8 trillion in assets across global markets, serving a diverse client base that includes governments, institutions, corporations, and individuals.
KEY QUOTES
“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.”
Will Milam, Head of U.S. Investments at Morgan Stanley Real Estate Investing
“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 U.S. industrial to benefit from the continued supply chain realignment, including increased onshoring of manufacturing.”
Lauren Hochfelder, Co-CEO of Morgan Stanley Real Estate Investing and Head of MSREI Americas
