PRP Real Assets Acquires Hyundai-Mobis Redistribution Center in Montgomery for $66.5 Million
PRP Real Assets has acquired the primary United States aftermarket parts redistribution center operated by Hyundai-Mobis in Montgomery, Alabama for $66.5 million, the Washington, D.C.-based investment firm announced September 21, 2026. The transaction covers a 459,680-square-foot, Class-A distribution facility at 1169 Mitchell Young Road and is structured as a 14-year triple-net lease with Hyundai-Mobis as the sole tenant.
The deal also contemplates a potential expansion that could bring PRP Real Assets' total investment in the property to approximately $96.5 million. At the base purchase price, the transaction implies a cost of roughly $145 per square foot.
A Mission-Critical Asset Within Hyundai's Montgomery Campus
The facility serves as the primary redistribution center for Hyundai, Kia, and Genesis aftermarket service parts in the United States, supplying more than 2,000 dealers nationwide. It sits on a 60-acre site and is fully integrated within Hyundai's broader 1.6-million-square-foot campus in Montgomery.
Delivered in September 2025, the building features concrete tilt-up construction with 36-foot clear heights, 36 dock-high doors, ESFR fire protection, and a power supply more than twice the capacity typical for a distribution property of its size. The site is fully entitled for significant expansion construction, with development documents pointing to a potential future addition of approximately 243,360 square feet.
Hyundai-Mobis, which occupies 100% of the building through its operating entity Mobis Alabama LLC, has committed $26 billion to U.S. operations through 2028 and is increasing domestic manufacturing capacity by 64% — described in the announcement as the largest expansion announced by a foreign automaker in the current cycle. The Montgomery campus already functions as a major Tier 1 supplier to Hyundai's Alabama assembly plant and Kia's Georgia plant, producing cockpit modules, chassis modules, bumper assemblies, and instrument panels in addition to distributing service parts nationwide.
Long-Duration Demand Tied to Vehicle Lifecycle
PRP Real Assets framed the acquisition around the structural, long-term demand created by vehicle production. Each vehicle manufactured generates a service-parts obligation lasting two decades or more, a dynamic the firm cited as underpinning the redistribution center's role within Hyundai-Mobis's supply chain and supporting the 14-year lease term.
"The Hyundai-Mobis asset is representative of PRP's broader Mission-Critical strategy, acquiring best-in-class assets that serve market-leading, investment-grade tenants with essential operational and production capacity," said EJ Wislar, Managing Director of PRP Real Assets Mission-Critical Net Lease investments. "Hyundai continues to invest to grow its North American production and logistics network, and the Montgomery, AL asset constitutes a long-term, core asset within that network."
PRP Real Assets' Mission-Critical Net Lease Strategy
PRP Real Assets operates across three investment verticals: Mission-Critical Assets, Multifamily, and Thematic Special Situation Investments. Since its founding in 2005, the firm has acquired more than $6 billion in real estate investments on behalf of institutional investors, family offices, and financial institutions. The firm is vertically integrated, with in-house capabilities spanning investment management, development, construction, property management, and asset management.
The Hyundai-Mobis redistribution center fits within the firm's core investment strategy, targeting specialized industrial infrastructure that is integral to a tenant's operational continuity rather than commodity warehouse space. The single-tenant, stabilized structure — 100% occupied on a long-term net lease with a new, purpose-built building — reflects an institutional approach to industrial real estate focused on credit quality and lease duration over near-term lease-up risk.
Industrial Market Context
The acquisition comes as national industrial fundamentals remain broadly supportive of long-term net lease strategies. Industrial cap rates nationally averaged approximately 5.2% in mid-2026, with vacancy at 7.3% and rent growth at 4.2%, based on Colliers data. In Alabama, Class-A, institutional-grade warehouse assets in primary metros have traded in a 6.50% to 7.50% cap rate range, with secondary and tertiary markets and older product pricing wider. Given the build-to-suit nature of the Hyundai-Mobis facility, its investment-grade tenancy, and its 14-year lease term, the Montgomery asset is positioned within the tighter end of the regional industrial pricing spectrum.
The deal reflects a broader institutional theme of acquiring specialized industrial real estate tied to domestic manufacturing expansion and supply-chain investment, particularly in the automotive sector, where reshoring activity has accelerated in recent years.