Morgan Stanley Real Estate Investing Acquires Silicon Valley R&D Facility for $84.1 million, Building on Continued Investment Themes Across the Platform
NEW YORK–(BUSINESS WIRE)–
Morgan Stanley Investment Management, through investment funds managed by Morgan Stanley Real Estate Investing (MSREI), announced today the acquisition of a 189,481-square-foot research and development facility in Milpitas, California for $84.1 million. The facility is subject to a long-term net lease agreement with KLA Corporation, a global leader in semiconductor process control and yield management systems.
The Class A facility is situated within Silicon Valley’s “Golden Triangle,” a key international hub for semiconductor innovation and advanced manufacturing.
“This acquisition reflects our continued conviction in Silicon Valley as a leading hub for semiconductor innovation and advanced manufacturing,” said David Gross, Managing Director, MSREI. “The property’s specialized infrastructure, proximity to KLA’s global headquarters and significant investment by the tenant underscore the facility’s strategic importance.”
The KLA acquisition is among several recent MSREI investments aligned with long-term trends driving real estate demand, including the continued growth of technology and data infrastructure, increased focus on defense and national security, and aging demographics.
“The breadth of our recent activity demonstrates how we are translating our highest-conviction themes into investments across the platform,” said Will Milam, Head of MSREI, U.S. “We continue to see attractive opportunities in assets that support technology and data infrastructure, advanced manufacturing and logistics, and seniors housing, where long-term structural trends are driving real estate demand.”
In September, MSREI acquired an industrial manufacturing facility occupied by Munters, a provider of climate-control solutions. The 20-megawatt facility expands MSREI’s exposure to specialized manufacturing assets serving the continued growth of data infrastructure.
MSREI has also invested in real estate positioned to benefit from increased investment in defense and national security infrastructure. This includes the recent acquisition of an industrial manufacturing facility occupied by BAE Systems, a global defense, aerospace and security company. The facility features 65 megawatts of available power capacity, an onsite steam plant and chilled water infrastructure, reflecting the specialized real estate requirements associated with advanced manufacturing operations.
MSREI’s activity this year also extends to logistics assets. In August, MSREI acquired a newly developed Class A cross-dock distribution facility in Kansas City, Missouri, for $158.5 million. The facility, occupied by Ace Hardware, is the company’s highest volume distribution location and is expected to serve approximately 500 stores.
In seniors housing, MSREI has remained active across acquisitions and realizations. The firm recently announced the acquisition of a Class A portfolio in the Orlando and Tampa metropolitan areas comprising two communities with 300 independent living, assisted living and memory care units. Earlier this year, MSREI also completed the $296 million sale of the final 11 communities in its Spring Arbor Senior Living portfolio in Maryland and Virginia, marking the full exit of the investment. Funds managed by MSREI have been actively investing in seniors housing since 2022 and maintain ownership interests in 13 senior living communities across the United States.
About Morgan Stanley Real Estate Investing
Morgan Stanley Real Estate Investing 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 / core-plus 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 $58 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 $2 trillion in assets under management or supervision as of June 30, 2026. 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.
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