Morgan Stanley's Prime Property Fund has bought the New York Marriott East Side hotel for $287 million. The property was owned by Chicago lodging firm Strategic Hotel Capital. The 35-story Marriott East Side is located at Lexington Ave. and 49th street.

"The addition of this premier hotel property to the Prime portfolio increases the funds exposure to the lodging sector, which is experiencing significant growth," said Dave Hardman, Morgan Stanley's head of real estate, in a written statement.

This is the second large acquisition for Prime Property, which spent $2.1 billion in October to buy residential REIT AMLI Residential Properties Trust.