KANSAS CITY, MO. — Morgan Stanley Real Estate Investing (MSREI) has acquired a newly developed, 1.5 million-square-foot distribution facility in Kansas City for $158.5 million. The seller, Hunt Midwest, developed the Class A property as a build-to-suit for retailer Ace Hardware in 2025, marking the first phase of KCI 29 Logistics Park.
Measuring a half-mile from end to end, the Ace Hardware retail supply center is the largest distribution center in Kansas City by building footprint, according to MSREI. The property features a cross-dock configuration, clear height of 40 feet and extensive power capacity. Ace Hardware has invested in state-of-the-art automation and warehouse technology for the development.
KCI 29 Logistics Park, a 3,300-acre megasite, can support up to 20 million square feet of industrial development. The project is located at the intersection of I-29 and I-435, adjacent to the Kansas City International Airport. The immediate access to regional and national transportation networks offers companies the ability to reach 90 percent of the continental U.S. within two days or less, according to Hunt Midwest.
“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,” says David Gross, managing director at MSREI.
Mark Long and John Hassler of Newmark Zimmer brokered the off-market transaction.
MSREI is the global private real estate investment management business of Morgan Stanley (NYSE: MS). MSREI currently manages $58 billion of gross real estate assets worldwide on behalf of its clients.
Hunt Midwest is a privately held, Kansas City-based real estate development company with six decades of experience across industrial, self-storage, multifamily and senior living properties. Part of the Lamar Hunt family’s portfolio of businesses, Hunt Midwest has developed more than $3 billion in projects.
Ace Hardware, the world’s largest hardware cooperative, maintains more than 5,300 locally owned and operated stores across 60 countries.
— Kristin Harlow