Amazon distribution center at LAX sells for record…
An Amazon warehouse close to the gates of Los Angeles International Airport has bought for a record price as logistics facilities close to transportation hubs grow in worth.
The real estate investment arm of global financial providers firm Morgan Stanley lately paid $211 million for the distribution center on 98th Street amid a number of personal long-term parking buildings that serve LAX.
It was the largest industrial real estate deal of the 12 months in larger Los Angeles, according to real estate data supplier CoStar.
The distribution center was constructed earlier this 12 months to serve Amazon, which occupies the complete 143,060-square-foot facility in what CoStar said is “one of the most in-demand industrial corridors in the country. “
With industrial property vacancy near historic lows in the region and a shortage of land around LAX, investors continue to crowd into the few modern developments that come online, said Jesse Gundersheim, a senior analyst at CoStar.
Having a prominent tenant in place made the distribution center even more desirable, he said.
“The rise of e-commerce has fundamentally increased demand for well-located, modern logistics assets, which we believe are critical infrastructure for today’s economy and offer strong, long-term growth,” said Will Milam, head of U.S. Investments at Morgan Stanley Real Estate Investing.
The vendor was Overton Moore Properties, which paid $115 million for the positioning in 2020 before redeveloping it for Amazon. Torrance-based Overton Moore develops and operates logistics properties in the Western U.S.
Morgan Stanley manages $53 billion in gross real estate belongings worldwide and has been building a foothold in industrial hubs close to major ports and transportation hyperlinks.
“We are pleased to acquire this facility in a highly strategic distribution location, underscoring our continued strategy of securing key net lease investments in core logistics markets,” said David Gross, managing director at Morgan Stanley Real Estate Investing.
“This facility in particular is a critical asset for distribution and logistics needs in a significant region of Southern California where both a lack of space and regulatory hurdles present development constraints,” he said
Industrial gross sales quantity is up 4% 12 months over 12 months in Los Angeles, as capital prices have come down, pushed by decrease rates of interest, Gundershiem said.
The year-to-date deal depend has topped 800 transactions, surpassing the full-year totals of the past two years, with gross sales quantity above $5 billion.
Institutional buyers such as Morgan Stanley have been accountable for about one-third of the acquisition quantity in Los Angeles this 12 months, Gundersheim said.
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