Morgan Stanley Real Estate Investing (MSREI) announced the purchase of a 26‑acre industrial outdoor storage (IOS) facility in Southern California for approximately $92 million. The transaction adds a high‑quality, long‑term asset to MSREI’s portfolio and is secured by an absolute triple‑net lease with Oldcastle Infrastructure, a subsidiary of CRH plc, the world’s largest building‑materials company.
The IOS facility is a rare, large‑scale asset in a region where industrial space is scarce. The lease guarantees a stable, long‑term cash flow stream and transfers property expenses, taxes, and maintenance to the tenant, reducing operating risk for MSREI. Oldcastle has operated at the site for more than three decades, underscoring the tenant’s long‑term commitment and the strategic importance of the location to the company’s infrastructure supply chain.
MSREI’s acquisition strategy focuses on fee‑based, stable‑income assets in core logistics markets. Adding this facility strengthens the firm’s exposure to the Southern California market, a high‑demand hub for e‑commerce, onshoring, and supply‑chain realignment. The 26‑acre parcel is one of the largest IOS assets in the region, providing MSREI with a rare opportunity to capture a significant share of a growing market segment.
Will Milam, Head of U.S. Investments at MSREI, said the deal “exemplifies our strategy of sourcing 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.” Co‑CEO Lauren Hochfelder added that “net lease structures shift property expenses to the tenant, making cash flows among the most predictable in real estate, and we expect U.S. industrial to benefit from continued supply‑chain realignment and increased onshoring.”
The acquisition aligns with broader industry trends that favor large, flexible storage facilities in key logistics corridors. As e‑commerce volumes rise and manufacturers shift production closer to U.S. consumers, demand for IOS assets in Southern California has accelerated, driving up rents and making this 26‑acre parcel a valuable addition to MSREI’s diversified portfolio.
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