Morgan Stanley Investment Management, through investment funds managed by Morgan Stanley Real Estate Investing (MSREI), announced today the sale of a portfolio of four fully leased industrial properties, two located in El Paso and two in Laredo, Texas, for $178 million to two distinct institutional investors. The warehouses, which total more than 1.2 million square feet, are located within 10 miles of the United States' border with Mexico, which is experiencing a sharp increase in manufacturing.

Commenting on the sales, Will Milam, Head of U.S. Investments at Morgan Stanley Real Estate Investing, said: "We are pleased with the successful development, leasing and sale of these warehouse assets. With a greater focus on supply chain resiliency, companies are increasingly seeking to diversify where they manufacture goods. One result has been a shift to manufacturing in Mexico and a dramatic increase in imports into the United States, which is propelling warehouse demand along the U.S. southern border."

MSREI commenced construction on the four warehouses in 2022. The two El Paso properties total approximately 735,000 square feet and are located just three miles from the Zaragoza Bridge Port of Entry, which facilitates approximately 70% of loaded trucks crossing into the United States through Ciudad Juárez, Mexico, a top North American manufacturing hub.

Similarly, the two Laredo properties, totaling approximately 500,000 square feet, are located nine miles from the World Trade Bridge. Laredo's primary commercial border crossing, World Trade Bridge is the number one overall trade port in the United States among the nation's 450 international gateways for trade.

Eastdil Secured and Newmark advised on the sale of the El Paso and Laredo properties, respectively.

About Morgan Stanley Real Estate Investing
Morgan Stanley Real Estate Investing (MSREI) is the global private real estate investment management business of Morgan Stanley. One of the most active property investors in the world for over three decades, MSREI employs a patient, disciplined approach through global value-add/opportunistic and regional core real estate investment strategies. With 17 offices throughout the U.S., Europe and Asia, regional teams of dedicated real estate professionals combine a unique global perspective with local presence and significant transaction execution expertise. MSREI currently manages $53 billion of gross real estate assets worldwide on behalf of its clients.

About Morgan Stanley Investment Management
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 1,300 investment professionals around the world and $1.5 trillion in assets under management or supervision as of March 31, 2024. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service, and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. For further information about Morgan Stanley Investment Management, please visit www.morganstanley.com/im.

About Morgan Stanley
Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.

Contacts:

Media Relations Contact: Alyson Barnes, +1 212 762-0514, alyson.barnes@morganstanley.com