PALO ALTO, CALIF. — Morgan Stanley Real Estate has paid $65 million for a full leasehold interest in a 75,875-square-foot office building in Palo Alto. The building is located at 1117 South California Ave. within the Stanford Research Park. Its main tenant is Paul Hastings law firm, among others.
Morgan Stanley acquired the building for its commingled fund, The Prime Property Fund. This is the fund’s first Palo Alto investment. Northern California is one of seven markets preferred by the fund. Additional markets include Southern California, Chicago, South Florida, New York, Boston and Washington, D.C. About 9 percent of the fund’s portfolio is based in Northern California. This includes a mix of office and industrial properties throughout San Francisco, Santa Clara, San Jose, Hayward and Stockton. The fund’s counsel was provided by Doug Praw and Lewis Feldman of Goodwin Procter LLP.