This Industrial Building Sold for a Record-Setting Price

With only a few weeks left in the year, Morgan Stanley Real Estate Investing set a record for the biggest industrial deal of 2025 in Greater Los Angeles.

The Morgan Stanley subsidiary bought a 143,060-square-foot industrial facility at 5705 West 98th Street near Los Angeles International Airport for $211 million, or about $1,500 per square foot, CoStar reported. Torrance-based Overton Moore Properties was the seller, offloading the property five years after purchasing the property for $115 million and building a distribution center at the site.

The industrial property opened this year as a custom-built facility for Amazon. The Jeff Bezos-led e-commerce giant occupies the entirety of the building, and the expiration date of its lease is not clear.

The deal is Morgan Stanley’s latest vote of confidence in Southern California’s supply-constrained logistics market. Last month, the firm’s real estate subsidiary bought a 26-acre industrial outdoor storage parcel at 10650 Hemlock Avenue in Fontana for $92 million. Old Castle Infrastructure, a subsidiary of building material company CRH, sold the property.

Meanwhile, Overton Moore, one of the West Coast’s most active logistics developers, has been growing in California. Last year, the company raised $150 million to buy industrial buildings to add to its collection. The firm now holds a portfolio exceeding 6 million square feet and has built or acquired more than 40 million square feet across four states.

In Los Angeles, industrial sales volume is up 4 percent year-over-year, coinciding with a decrease in capital costs driven by lower interest rates, according to Jesse Gundersheim, senior director of market analytics for CoStar. The year-to-date deal count has surpassed 800 transactions, outdoing the full-year totals of the past two years. Sales volume registered at more than $5 billion, with a large chunk of it being powered by entities like Morgan Stanley Real Estate Investing. “Institutional investors like Morgan Stanley continue to drive about one-third of the acquisition volume in L.A. this year,” Gundersheim said.

Morgan Stanley Real Estate Investing is focused on “sourcing and securing institutional-quality investments in core logistics markets,” Will Milam, head of U.S. investments at the company, said in a statement.

— Chris Malone Méndez