Morgan Stanley Investment Management, through funds managed by Morgan Stanley Real Estate Investing, has acquired a newly completed distribution facility leased to Ace Hardware in Kansas City, Missouri. The off-market transaction values the 1.5 million-square-foot industrial property at $158,500,000, reflecting ongoing institutional interest in large-scale logistics assets.
The facility was developed by Hunt Midwest as a build-to-suit project for Ace Hardware in 2025 and represents the first phase of KCI 29 Logistics Park. The purpose-built design and timing underscore the park’s role as a key industrial hub within the region. Hunt Midwest sold the asset directly to Morgan Stanley Investment Management, with the parties choosing an off-market approach rather than a broad marketing process.
The property is subject to a long-term net lease with Ace Hardware, providing the new owner with a stabilized income stream backed by a national tenant. The focus on a net lease structure, combined with a single-credit occupant, positions the asset as a core industrial holding for Morgan Stanley’s real estate investment platform. The transaction was facilitated by Mark Long and John Hassler of Newmark Zimmer, who arranged the off-market sale between the parties.
David Gross, managing director at Morgan Stanley Real Estate Investing, stated that the acquisition reflects the firm’s ongoing conviction in high-quality net lease investments that feature strong tenant credit, mission-critical operations and institutional-grade real estate. This characterization highlights both the strategic importance of the facility to Ace Hardware’s supply chain and the quality of the underlying real estate.
The Ace Hardware building is located within KCI 29 Logistics Park, a 3,300-acre megasite planned to accommodate up to 20 million square feet of industrial facilities. Measuring approximately a half mile from end to end, the new structure is described as the largest distribution center in Kansas City by building footprint. The scale of both the building and the broader logistics park underscores the growing role of large-format industrial developments in regional distribution networks.
As the inaugural phase of KCI 29 Logistics Park, the Ace Hardware facility establishes an early benchmark for the type and size of industrial projects the megasite is expected to attract. The combination of a major institutional buyer, a long-term net lease to a national retailer and a large-scale logistics location positions the asset as a significant industrial trade within the Kansas City market.
