Investment funds managed by Morgan Stanley Real Estate Investing (MSREI), part of Morgan Stanley Investment Management, have acquired a newly built distribution centre in Kansas City, Missouri. The purchase price for the property amounted to US$158.5 million. The transaction was conducted off-market and concluded with the brokerage of Mark Long and John Hassler of Newmark Zimmer. The acquired property represents the first phase of the KCI 29 Logistics Park.
The asset, which was completed in 2025, spans an area of approximately 139,000 square metres (1.5 million square feet). It was developed by Hunt Midwest as a build-to-suit project. The distribution centre has a long-term net lease agreement with Ace Hardware, a globally operating company in the hardware and DIY sector, which has over 5,300 locally-owned stores in more than 60 countries.
Strategic Importance and Property Characteristics
David Gross, Managing Director at Morgan Stanley Real Estate Investing, commented on the acquisition, stating that it underscores their continued conviction in the value of high-quality net lease investments. He highlighted that such investments combine strong tenant creditworthiness, mission-critical operations, and institutional property quality. The acquired asset was described as a prime, highly automated logistics property in a strategically favourable location in Kansas City, one of the significant logistics hubs in the United States.
This acquisition aligns with MSREI's investment strategy, which focuses on investments in mission-critical properties with prime tenants. The Ace Hardware distribution centre is located within KCI 29 Logistics Park, a total area of approximately 1,335 hectares (3,300 acres), which offers potential for industrial facilities with a total area of up to 20 million square feet.
- —At approximately 800 metres (half a mile) in length, the building is the largest distribution centre by area in Kansas City.
- —The building's configuration features a cross-dock design.
- —It boasts a clear height of 12 metres (40 feet).
- —A high-capacity power supply is ensured.
Furthermore, Ace Hardware has made significant investments in state-of-the-art automation and warehousing technology, underscoring the central importance of the site for the company's nationwide logistics. These features position the property as a crucial component of Ace Hardware's supply chain and a valuable addition to MSREI's net lease portfolio.
