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

Will Milam, Head of U.S. Investments at Morgan Stanley Real Estate Investing, commented on the sales: “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.”

Construction on the four warehouses began in 2022 by MSREI. The two El Paso properties total approximately 735,000 square feet and are situated just three miles from the Zaragoza Bridge Port of Entry. This port facilitates about 70% of loaded trucks crossing into the United States through Ciudad Juárez, Mexico - a leading North American manufacturing hub.

The two Laredo properties total approximately 500,000 square feet and are located nine miles from the World Trade Bridge - Laredo’s primary commercial border crossing and America's top trade port among its 450 international gateways for trade.

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

Morgan Stanley Real Estate Investing (MSREI) is Morgan Stanley's global private real estate investment management business. It has been one of the most active property investors globally for over three decades.

Morgan Stanley Investment Management, along with its investment advisory affiliates, has more than 1,300 investment professionals worldwide and $1.5 trillion in assets under management or supervision as of March 31, 2024.

Morgan Stanley (NYSE: MS) is a leading global financial services firm offering a wide range of investment banking, securities, wealth management and investment management services.