Morgan Stanley Real Estate Investing has acquired a 1.5 million-square-foot distribution facility occupied by Ace Hardware in Kansas City, Missouri, for USD 158.5 million. The property was purchased from Kansas City-based developer Hunt Midwest through an off-market transaction. 
The facility is part of KCI 29 Logistics Park, a 3,300-acre industrial development located near Kansas City International Airport. Hunt Midwest developed the building as the first completed project at the logistics park, which is planned to accommodate large-scale industrial and distribution developments. 
The Ace Hardware facility was completed and opened last year. It operates under a long-term net lease with Ace Hardware, providing the property with a committed occupier. Newmark Zimmer executives Mark Long and John Hassler facilitated the transaction. 
The distribution centre measures about half a mile from end to end and is the largest distribution facility in the Kansas City region by building footprint. It is also nearly twice the size of an average Ace Hardware retail support centre. The building has a cross-dock layout, a 40-foot clear height and extensive loading and parking infrastructure. 
The facility was designed with 286 dock doors, four drive-in doors, 383 tractor-trailer parking spaces and around 400 vehicle parking spaces. It also uses warehouse automation and management systems to support Ace Hardware's distribution operations. 
Ace Hardware began using the facility as part of its wider distribution network, supporting its network of more than 5,000 locally owned retail stores in the US. The company had selected the Kansas City location to strengthen its Midwest distribution capacity and handle continued growth in its retail network. The facility is also expected to support more than 350 local jobs. 
The location of the property is another key factor behind the development. KCI 29 Logistics Park sits along Interstate 29 and has direct access to Interstate 435 and the Kansas City International Airport air cargo hub. The site also has access to transmission-level power, a transmission water line and a wastewater treatment plant, making it suitable for large industrial, distribution, e-commerce and technology users. 
Hunt Midwest had originally announced the Ace Hardware project as a build-to-suit development. Construction began with the facility positioned as the first building on the 3,300-acre megasite. At the time, the project was expected to create around 350 jobs and strengthen Ace Hardware's distribution network in the central United States. 
The development was completed through an accelerated construction programme, with Hunt Midwest handing over the facility for early access in late 2024. Ace Hardware subsequently installed automation and warehouse technology before the centre became fully operational. The project later received a 2025 Kansas City Business Journal Capstone Award in the industrial category. 
KCI 29 Logistics Park has been planned as one of Missouri's largest industrial sites, with capacity for more than 20 million square feet of Class A industrial space. Hunt Midwest's current property information lists approximately 14 million square feet of space as available across the broader development. The site provides options for build-to-suit developments, land sales and industrial leasing. 
For Morgan Stanley Real Estate Investing, the acquisition adds a leased industrial property to its real estate portfolio. The investment platform manages approximately USD 58 billion in real estate assets globally, according to information cited in connection with the transaction. Morgan Stanley Investment Management had approximately USD 2 trillion in assets under management or supervision as of the end of June 2026. 
Hunt Midwest, meanwhile, has developed more than USD 3 billion worth of projects across multiple US markets and has a portfolio covering industrial, self-storage, residential, multifamily and senior living developments. The Ace Hardware project was among several build-to-suit industrial developments completed by the company in the region. 
Source Reuters