Morgan Stanley Real Estate Investing (MSREI) announced the purchase of a 19‑acre, Class A last‑mile delivery distribution center located just east of Los Angeles International Airport for $211 million. The property, built by Overton Moore Properties, includes a modern distribution building and an industrial outdoor storage (IOS) parking site that is long‑term net‑leased to Amazon for a 15‑year term.
The deal underscores MSREI’s strategy of acquiring high‑quality, net‑leased logistics assets in core markets. LAX is a strategic hub for freight and e‑commerce, providing direct access to affluent Southern California communities and a network of major carriers. The scarcity of well‑located logistics space in the region, coupled with regulatory hurdles that limit new construction, makes the acquisition a valuable addition to the firm’s portfolio.
MSREI has added roughly $1.5 billion of U.S. industrial assets in 2025, bringing its U.S. industrial holdings to more than 75 million square feet. The LAX facility is the latest in a series of acquisitions, following a $92 million purchase of a 26‑acre IOS site in Fontana, CA, in November 2025. The new asset expands the firm’s exposure to the growing e‑commerce and last‑mile delivery market, which is expected to continue expanding as online retail dominates.
David Gross, Managing Director of MSREI, said the acquisition “strengthens our position in a highly strategic distribution location and reinforces our focus on securing key net‑lease investments in core logistics markets.” Will Milam, Head of U.S. Investments, added that “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.”
The transaction reflects broader market dynamics: e‑commerce growth, supply‑chain reconfiguration, and onshoring trends are driving demand for last‑mile facilities, while space constraints and regulatory barriers keep prime locations scarce. By adding a high‑quality, long‑term lease to Amazon, MSREI positions itself to capture a share of this tailwind while maintaining a stable, income‑generating asset in a resilient sector.
Overall, the LAX acquisition signals MSREI’s continued commitment to building a diversified, high‑quality logistics portfolio that can capitalize on the sustained growth of e‑commerce and last‑mile delivery, reinforcing the firm’s long‑term value proposition for investors.
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