Los Angeles — An Amazon distribution center located near the gates of Los Angeles International Airport has sold for a record $211 million, highlighting the rising value of logistics properties near major transportation hubs.
The 143,060 square foot facility on 98th Street was acquired by the real estate investment arm of Morgan Stanley, marking the largest industrial real estate transaction in greater Los Angeles so far this year, according to data from CoStar, a real estate analytics provider.
The distribution center, completed earlier this year, was built specifically to serve Amazon, which occupies the entire facility. Its proximity to LAX, combined with limited available land and a cluster of private long term parking structures nearby, has made the location highly sought after by investors.
“Industrial property near airports and ports has become some of the most in demand real estate in Southern California,” said Jesse Gundersheim, senior analyst at CoStar. “Vacancy rates are near historic lows, and there are very few modern developments available for acquisition or lease.”
The seller, Overton Moore Properties, purchased the site in 2020 for $115 million before redeveloping it for Amazon’s use. Torrance based Overton Moore develops and operates logistics properties across the Western United States, focusing on strategic distribution hubs.
Morgan Stanley, which manages $53 billion in gross real estate assets globally, has been actively expanding its portfolio in key industrial markets, including areas near major ports and transportation corridors.
“E-commerce growth has fundamentally increased demand for well located, modern logistics assets,” said Will Milam, head of US Investments at Morgan Stanley Real Estate Investing. “These properties serve as critical infrastructure for today’s economy and offer strong long term growth potential.”
David Gross, managing director at Morgan Stanley Real Estate Investing, said the acquisition “underscores our strategy of securing key net lease investments in core logistics markets.
This facility is a critical asset for distribution and logistics needs in Southern California, where space is limited and regulatory hurdles make new development challenging.”
Industrial real estate sales in Los Angeles have been robust in 2025. According to CoStar, the year to date transaction count has exceeded 800 deals, surpassing the full year totals of the past two years.
Total sales volume has topped $5 billion, up about 4 percent from the previous year, driven in part by declining interest rates.
Institutional investors, including Morgan Stanley, accounted for roughly one-third of acquisition activity in the Los Angeles industrial sector.
Gundersheim noted that “capital continues to flow toward high quality, fully leased distribution centers in prime locations, as buyers seek stability and predictable returns.”
Local business owners in the area have observed the rise in industrial activity firsthand. “You can see the demand for warehouse space everywhere,” said Maria Lopez, who runs a logistics consulting firm near LAX.
“Companies like Amazon are pushing the market to new highs, and investors are willing to pay record prices for strategic locations.”
Nearby residents have also noticed the transformation of the neighborhood. “Traffic and construction have increased, but the jobs and economic activity it brings are significant,” said James Park, a longtime LAX area resident.
“It’s clear that logistics and e-commerce are reshaping our community.” Analysts expect demand for modern, strategically located logistics properties to remain strong.
With limited developable land around LAX and Southern California’s ongoing e-commerce growth, experts predict that industrial property prices may continue to rise.
“Distribution centers near airports and ports are not just real estate they are critical nodes in the supply chain,” said Gundersheim. “We anticipate that investors will remain competitive for these assets for the foreseeable future.”
The sale of Amazon’s LAX adjacent distribution center represents both a record setting industrial transaction and a broader trend in Southern California real estate.
As e-commerce continues to expand and available land remains scarce, well positioned logistics assets are expected to sustain strong demand among institutional investors.
