- Morgan Stanley Real Estate Investing acquired a 143,060 SF Amazon-leased warehouse near LAX for $211M, or about $1,500 PSF—the highest industrial deal in LA this year.
- The facility was developed by Overton Moore as a build-to-suit for Amazon, highlighting ongoing demand for last-mile logistics in supply-constrained markets.
- Institutional investors continue to dominate LA’s industrial market, with deal volume surpassing $5B year-to-date and more than 800 transactions logged.
Prime Logistics Real Estate
Morgan Stanley Real Estate Investing has made a high-profile bet on Los Angeles’ tight industrial market, reports CoStar. The firm recently purchased a brand-new Amazon distribution center located just blocks from Los Angeles International Airport. The $211M deal—about $1,500 PSF—makes it the largest industrial property sale in the region this year.
The 143,060-SF building, located at 5705 W. 98th St., was sold by Overton Moore Properties. The Torrance-based logistics developer acquired the site in 2020 for $115M. It was later redeveloped specifically for Amazon.
Strategic Location, Institutional Appeal
Completed earlier this year, the facility is fully leased to Amazon. While lease terms haven’t been disclosed, industry guidance suggests 15-year commitments are typical for e-commerce giants in new build-to-suit facilities.
Morgan Stanley’s latest purchase reflects its continued push into core logistics hubs. The firm manages $53B in real estate globally. It recently expanded in Southern California with a $92M acquisition of an industrial outdoor storage site in Fontana.
“Institutional-quality logistics assets remain a priority,” said Will Milam, head of US investments at Morgan Stanley Real Estate Investing.
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A Market On The Move
Los Angeles’ industrial market has remained resilient even amid broader commercial real estate headwinds. According to CoStar, industrial sales volume is up 4% year-over-year in LA, thanks to easing capital costs and high investor demand. LAX’s industrial market faces historically low vacancy as demand outpaces the limited new supply.
“Institutional investors like Morgan Stanley continue to drive about one-third of the acquisition volume in LA this year,” said Jesse Gundersheim, CoStar’s senior director of market analytics.
Developer Keeps Expanding
For Overton Moore, the deal caps another milestone in its rapid expansion. The firm now manages more than 6M SF and has completed over 40M SF of industrial space across four states. After raising $150M last year to acquire more assets, it continues to refine its portfolio—recently selling a smaller Burbank property for $2M.
Why It Matters
This transaction underscores the ongoing investor appetite for institutional-grade logistics assets in urban infill locations. Demand is especially strong for properties with blue-chip tenants like Amazon. With limited developable land and strong e-commerce demand, the South Bay submarket remains one of the most competitive in the country.
As Morgan Stanley and other institutional players continue to target these strategic hubs, expect more high-value transactions in 2026 and beyond.
