Blackstone has offloaded a large industrial property next to Queens’ LaGuardia Airport that is occupied by Fedex.

Blackstone, through its Chicago-based portfolio company Revantage, sold the two-story warehouse at 83-15 24th Avenue and the adjacent parking lot at 83-84 23rd Avenue for a total of $86.7 million, according to broker JLL and city records made public Tuesday.

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The buyer was an investment fund managed by Morgan Stanley Real Estate Investing (MSREI), which used the entity NHNR Hold Co 28 in the deal, records show.

The industrial property, located in Queens’ East Elmhurst neighborhood, comprises an 116,596-square-foot facility across two parcels and a 1.7-acre parking lot that has been “supporting FedEx’s last-mile distribution operations,” according to JLL.

The property is 100 percent leased to FedEx, which has 17.3 years remaining on its lease, providing MSREI with “durable, long-term income backed by a global company,” JLL said.

“This transaction highlights the continued depth of institutional capital targeting New York’s infill industrial market,” JLL’s Tyler Peck, who was part of the JLL team that arranged the sale, said in a statement. “FedEx’s long-term commitment to the property and its immediate proximity to LaGuardia Airport make this a best-in-class logistics facility and an exceptional long-term hold for Morgan Stanley.”

JLL’s Peck, Andrew Scandalios, John Huguenard, John Plower, Nick Stefans and Jason Lundy arranged the sale, representing the seller and procuring the buyer.

Blackstone and Morgan Stanley declined to comment.

The industrial property between 83rd and 85th streets “serves as a mission-critical logistics hub for FedEx, facilitating ground-route distribution across New York City and Long Island,” according to JLL.

News of the deal comes amid a pretty strong year so far for industrial leasing in New York City’s outer boroughs. Year-to-date, new industrial leasing totaled 2.6 million square feet by the end of the third quarter of 2025, representing a 6.4 percent increase year-over-year, according to a report from Cushman & Wakefield. Brooklyn and Queens led the charge, accounting for 88.9 percent of total leasing volume and eight of the third quarter’s top 10 transactions, the report found.

Isabelle Durso can be reached at idurso@commercialobserver.com.