Morgan Stanley Real Estate Investing (MSREI) completed the purchase of a 291,100‑square‑foot advanced‑manufacturing facility located at 44100‑44200 Osgood Road in Fremont, California, for $110.3 million. The transaction, finalized on January 9 2026, was announced on January 20 2026.
The property is leased to Western Digital under a long‑term net‑lease that extends beyond 2035. Western Digital operates the site as a head‑wafer fabrication and research‑and‑development center, providing a stable, high‑quality tenant that underpins the asset’s predictable cash flow.
MSREI’s acquisition aligns with its strategy of investing in high‑quality research‑and‑development and advanced‑manufacturing assets in innovation corridors. The deal expands the firm’s Bay Area footprint and adds a long‑term net‑lease asset that contributes to a growing U.S. industrial portfolio now exceeding 75 million square feet, following $1.5 billion of industrial acquisitions in 2025.
The Bay Area remains a key growth region for data‑center and high‑tech manufacturing real estate, but pricing dynamics have shifted. The Fremont facility sold in 2019 for $117 million, and the 2026 sale at $110.3 million reflects a modest discount, yet the strong tenant and location preserve the asset’s strategic value.
Will Milam, Head of U.S. Investments at MSREI, said the purchase “reflects MSREI’s conviction in the Bay Area’s advanced manufacturing ecosystem and aligns with our strategy of 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.”
MSREI also added a $1 billion student‑housing portfolio in November 2025 and a $211 million last‑mile delivery facility near LAX, illustrating a diversified portfolio that now includes advanced manufacturing, student housing, and logistics assets.
The long‑term net lease with Western Digital provides predictable income, while the Bay Area’s continued demand for advanced manufacturing supports future growth. The acquisition’s price, though lower than the 2019 valuation, underscores MSREI’s confidence in the region’s long‑term prospects and its ability to secure high‑quality tenants in a competitive market.
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