Exclusive: Morgan Stanley Spends $143M in California

Morgan Stanley Real Estate Investing has acquired two California industrial properties for $142.7 million, according to Yardi Matrix information. Oldcastle Infrastructure and Blackstone’s Link Logistics sold the assets in two separate transactions.

One of the properties the company purchased is a 139,900-square-foot campus at 47173 & 47266 Benicia St. in Fremont, Calif. The firm paid $51 million—about $364.6 per square foot—to Link Logistics.

The three-building complex is in Greater San Francisco, adjacent to Interstate 880 and within 7 miles of Fremont’s city center. Downtown San Jose, Calif., and San Jose Mineta International Airport are within 12 miles.

Completed in 1985, the campus has three dock-high doors and five drive-in doors. Two of the facilities have dock bumpers and levelers, as well as office build-outs. The 8-acre property also has 441 parking spaces.

Built in 1982, the other facility spans 91,644 square feet and is at 10650 Hemlock Ave. in Fontana, Calif., in the Inland Empire. Oldcastle Infrastructure—which also occupies the building—sold it for $91.7 million, about $1,000 per square foot.

Used for manufacturing, the building sits on 26 acres and is close to Interstate 10 and Ontario International Airport. Downtown Los Angeles is 46 miles away, while LAX is roughly 68 miles away.

Morgan Stanley’s recent industrial deals

Morgan Stanley acquired more than 5.2 million square feet of industrial facilities year-to-date as of November, according to Yardi Matrix information, reflecting sustained momentum in industrial real estate investment volume across major U.S. markets.

In one of its largest single-asset deals of the year, the firm paid $139.1 million to Grandview Partners for a 798,000-square-foot warehouse, the same source shows. The building is in Statesville, N.C., and came online earlier this year.

A few months ago, Morgan Stanley paid $343 million to Nissan North America Inc. for a 1.3 million-square-foot portfolio. The assets that traded are in California, Texas, New Jersey and Illinois.