An Amazon warehouse near the gates of Los Angeles International Airport has sold for a record price as logistics centers near transportation hubs grow in value.<\/p>\n
The real estate investment arm of global financial services firm Morgan Stanley recently paid $211 million for the distribution center on 98th Street amid several private long-term parking structures that serve LAX. <\/p>\n
It was the biggest industrial real estate deal of the year in greater Los Angeles, according to real estate data provider CoStar. <\/p>\n
The distribution center was built earlier this year to serve Amazon, which occupies the entire 143,060-square-foot facility in what CoStar said is \u201cone of the most in-demand industrial corridors in the country. \u201c <\/p>\n
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. <\/p>\n
Having a prominent tenant in place made the distribution center even more desirable, he said. <\/p>\n
\u201cThe rise of e-commerce has fundamentally increased demand for well-located, modern logistics assets, which we believe are critical infrastructure for today\u2019s economy and offer strong, long-term growth,\u201d said Will Milam, head of U.S. Investments at Morgan Stanley Real Estate Investing. <\/p>\n
The seller was Overton Moore Properties, which paid $115 million for the site in 2020 before redeveloping it for Amazon. Torrance-based Overton Moore develops and operates logistics properties in the Western U.S.<\/p>\n
Morgan Stanley manages $53 billion in gross real estate assets worldwide and has been building a foothold in industrial hubs near major ports and transportation links.<\/p>\n
\u201cWe 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,\u201d said David Gross, managing director at Morgan Stanley Real Estate Investing. <\/p>\n
\u201cThis 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,\u201d he said<\/p>\n
Industrial sales volume is up 4% year over year in Los Angeles, as capital costs have come down, driven by lower interest rates, Gundershiem said. <\/p>\n
The year-to-date deal count has topped 800 transactions, surpassing the full-year totals of the past two years, with sales volume above $5 billion.<\/p>\n
Institutional investors such as Morgan Stanley have been responsible for about one-third of the acquisition volume in Los Angeles this year, Gundersheim said.<\/p>\n","protected":false},"excerpt":{"rendered":"An Amazon warehouse near the gates of Los Angeles International Airport has sold for a record price as…\n","protected":false},"author":2,"featured_media":96924,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[53127,46021,53130,1512,53132,9472,53133,48,52,51,1474,53129,47,50,49,63,53131,53128,10263,1744,72],"class_list":["post-96923","post","type-post","status-publish","format-standard","has-post-thumbnail","category-los-angeles","tag-amazon-distribution-center","tag-amazon-warehouse","tag-costar","tag-facility","tag-industrial-sale-volume","tag-investor","tag-jesse-gundersheim","tag-la","tag-la-headlines","tag-la-news","tag-lax","tag-logistic-center","tag-los-angeles","tag-los-angeles-headlines","tag-los-angeles-news","tag-los-angeles-times","tag-overton-moore-properties","tag-record-price","tag-region","tag-space","tag-year"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/96923","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=96923"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/96923\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/96924"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=96923"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=96923"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=96923"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}