Key Takeaways
- • Morgan Stanley Investment Management acquired a 290,000-square-foot, two-building manufacturing property in Fremont, California for $110.3 million, sourced through Morgan Stanley Real Estate Investing funds.
- • The purchase was driven by the facility's superior high-power infrastructure capacity and location in a core innovation corridor with constrained supply, strong R&D demand, and access to top talent, according to Will Milam, head of U.S. investments at Morgan Stanley Real Estate Investing.
- • Seller Angelo Gordon purchased the property from Western Digital Corporation in 2019 for $117.1 million; Western Digital maintains a long-term lease in both buildings with undisclosed relocation plans.
- • Fremont industrial real estate market demonstrated significant activity in January 2026, with concurrent transactions including a Prologis sale of a 26-acre redevelopment site for $70.1 million and multiple other industrial property transfers.
Summary
Morgan Stanley Investment Management has deployed $110.3 million to acquire a strategically positioned manufacturing facility in Fremont, California, reflecting institutional investor appetite for high-quality industrial assets in constrained supply markets. The transaction involved two adjacent buildings totaling 290,000 square feet located at 44100 and 44200 Osgood Road. The buyer leveraged capital managed by Morgan Stanley Real Estate Investing, the firm's dedicated real estate investment platform.
The property changed hands from Angelo Gordon, a New York-based real estate investor, which had held the asset since purchasing it from data storage manufacturer Western Digital Corporation in 2019 for $117.1 million. Western Digital retains a long-term lease across both buildings, though specific lease terms and the company's future relocation intentions were not disclosed in the transaction.
Morgan Stanley's investment thesis centered on infrastructure differentiation and supply-demand dynamics. Will Milam, head of U.S. investments at Morgan Stanley Real Estate Investing, emphasized that the firm is "investing in high-quality research and development assets in core innovation corridors, where demand is driven by superior infrastructure and access to top talent, and where supply remains constrained." The facility's exceptional power capacity relative to competing East Bay properties aligned with this strategic positioning toward innovation-focused tenants requiring robust energy infrastructure.
The Fremont industrial market demonstrated notable velocity in January 2026 beyond the Morgan Stanley transaction. Prologis divested a 26-acre industrial redevelopment site at 41777 Boyce Road for $70.1 million to CDECRE LLC, an affiliate of a Chicago-based real estate operator. This activity underscores sustained institutional capital deployment into Bay Area manufacturing and R&D real estate, driven by supply constraints and tenant demand concentrated in premium-infrastructure locations supporting advanced manufacturing and technology-adjacent operations.
The property changed hands from Angelo Gordon, a New York-based real estate investor, which had held the asset since purchasing it from data storage manufacturer Western Digital Corporation in 2019 for $117.1 million. Western Digital retains a long-term lease across both buildings, though specific lease terms and the company's future relocation intentions were not disclosed in the transaction.
Morgan Stanley's investment thesis centered on infrastructure differentiation and supply-demand dynamics. Will Milam, head of U.S. investments at Morgan Stanley Real Estate Investing, emphasized that the firm is "investing in high-quality research and development assets in core innovation corridors, where demand is driven by superior infrastructure and access to top talent, and where supply remains constrained." The facility's exceptional power capacity relative to competing East Bay properties aligned with this strategic positioning toward innovation-focused tenants requiring robust energy infrastructure.
The Fremont industrial market demonstrated notable velocity in January 2026 beyond the Morgan Stanley transaction. Prologis divested a 26-acre industrial redevelopment site at 41777 Boyce Road for $70.1 million to CDECRE LLC, an affiliate of a Chicago-based real estate operator. This activity underscores sustained institutional capital deployment into Bay Area manufacturing and R&D real estate, driven by supply constraints and tenant demand concentrated in premium-infrastructure locations supporting advanced manufacturing and technology-adjacent operations.
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