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NEW YORK - Morgan Stanley Investment Management, through investment funds managed by Morgan Stanley Real Estate Investing (MSREI), announced today the acquisition of 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 Class A logistics facility as a build-to-suit in 2025 as the first phase at KCI 29 Logistics Park. The facility is subject to a long-term net lease with Ace Hardware, the world's largest hardware cooperative and one of the most recognized brands in the home improvement sector, with more than 5,300 locally owned and operated stores across over 60 countries. This 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 facility is a best-in-class, highly automated logistics asset strategically located in Kansas City, one of the country's most important distribution markets.”
The acquisition aligns with MSREI's ongoing strategy of investing in mission-critical real estate leased to high-quality tenants. 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 award-winning new facility is the largest distribution center in Kansas City by building footprint. The building features a cross-dock configuration, 40-foot clear height and extensive power capacity, and Ace Hardware's significant investment in state-of-the-art automation and warehouse technology inside underscores its importance to the company's nationwide distribution operations.
Together, these attributes position the property as a critical component of Ace Hardware’s supply chain and a compelling addition to MSREI’s net lease portfolio.
About Morgan Stanley Real Estate Investing
Morgan Stanley Real Estate Investing is the global private real estate investment management business of Morgan Stanley. One of the most active property investors in the world for over three decades, MSREI employs a patient, disciplined approach through global value-add / opportunistic and regional core / core-plus real estate investment strategies. With 17 offices throughout the U.S., Europe and Asia, regional teams of dedicated real estate professionals combine a unique global perspective with local presence and significant transaction execution expertise. MSREI currently manages $58 billion of gross real estate assets worldwide on behalf of its clients.
About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,300 investment professionals around the world and $2 trillion in assets under management or supervision as of June 30, 2026. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.
About Hunt Midwest
Hunt Midwest is a privately held, Kansas City-based real estate development company with six decades of experience across industrial, self-storage, residential, multifamily and senior living properties. The company has developed more than $3 billion in projects across multiple geographic markets and draws on its reputation, resources and relationships to deliver successful real estate solutions. Hunt Midwest is part of the Lamar Hunt family’s portfolio of businesses, which spans real estate, sports and entertainment, energy and natural resources, private equity and other investments. Learn more at HuntMidwest.com.
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