Morgan Stanley Closes $110M Bay Area Acquisition
Western Digital fully occupies the advanced manufacturing property.
Morgan Stanley Investment Management is expanding its industrial footprint in Fremont, Calif., where it acquired a 290,000-square-foot two-building advanced manufacturing property leased by Western Digital for $110 million.
The acquisition was made through funds managed by Morgan Stanley Real Estate Investing. MSREI did not disclose the seller but the most recent owner of the properties at 44100 and 44200 Osgood Road was TPG Angelo Gordon.
In April 2019, the firm then known as Angelo Gordon, acquired the portfolio from Western Digital for $117.1 million, according to Yardi Matrix information. Western Digital, a global leader in the data storage and infrastructure solutions sector, purchased the assets in March 2006 from South Bay Development for an unknown amount, the same source showed.
Wil Milam, head of U.S. investments at Morgan Stanley Real Estate Investing, said in a prepared statement the acquisition of the Osgood Road assets reflects MSREI’s conviction in the Bay Area’s advanced manufacturing ecosystem. Milam said the investment aligns with the firm’s strategy of investing in high-quality research and development assets in core innovation corridors where supply remains constrained. The firm stated the advanced manufacturing space features high-power capacity compared to market averages.
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The larger of the two buildings is 44100 Osgood Road with 189,000 square feet on a 9.52-acre lot, Yardi Matrix data shows. The building was completed in 1984 and had two cosmetic renovations between 2008 and 2012. The one- and two-story glass and masonry building has a 14-foot clear height and 322 parking spaces, Yardi Matrix reported. The building at 44200 Osgood Road exceeds 100,000 square feet, according to the same source. The property sits on more than 5 acres and includes 228 parking spots. Originally developed in 1992, the building underwent cosmetic renovations in 2008 and 2012.
Earlier MSREI purchase
The deal comes about two months after MSREI paid $51 million for a 139,900-square-foot industrial campus owned by Blackstone’s Link Logistics at 47173 & 47266 Benicia St. in Fremont, according to Yardi Matrix information. The three-building, 8-acre complex was completed in 1985. The campus has three dock-high doors and five drive-in doors. Two of the assets have office buildouts.
The campus is located 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.
With the completion of the Osgood Road deal, MSREI has acquired approximately $1.5 billion of U.S. industrial assets in 2025, bringing its U.S. industrial portfolio to more than 75 million square feet.
Market eyed by investors
MSREI’s purchase of the Fremont tech campus comes as more institutional investors are scooping up buildings in the San Francisco Bay Area market with advanced manufacturing and artificial intelligence capabilities, reflecting broader industrial market trends.
Earlier this month, Tishman Speyer acquired the Christy Street Industrial Center, a fully leased 253,440-square-foot industrial property in Fremont, from BlackRock for $93 million. Sanmina Corp., a global electronics manufacturer, occupies the Class A property through a long-term lease, which began in April 2025, according to Yardi Matrix.
Also this month, Longpoint Partners received $108 million in acquisition financing from PGIM for a four-building industrial portfolio, including an asset in Fremont. The other properties in the more than 760,000-square-foot portfolio are located in Irving, Texas; Doral, Fla.; and Medley, Fla. The properties are a mix of light industrial, distribution and manufacturing facilities located in some of the country’s most supply-constrained industrial markets with durable tenant demand.
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