Skims Hollywood HQ Trades for $105M
Kingsbarn Realty Capital has acquired 1601 Vine, a 115,589-square-foot office building in Hollywood, for $105 million. J.H. Snyder sold the asset in a deal brokered by Newmark.
Shapewear and clothing company Skims anchors the Class A, eight-story building. The mid-rise was renovated last year to adapt to the tenant’s needs, which signed a 15-year lease at the property in 2023. The space previously served as WeWork’s only Hollywood location.
Located along the Hollywood Walk of Fame, the property is less than 7 miles from downtown Los Angeles and two blocks away from U.S. Route 101. Los Angeles International Airport is some 24 miles southwest.
READ ALSO: 2024 Single-Tenant Office Quarterly Sales Volume & Cap Rates
J.H. Snyder completed the building in 2017 using funds from a $36 million loan originated by City National Bank, according to CommercialEdge information. Previous financing also includes a $50 million note arranged in 2018 from the same lender.
The property features floorplates averaging 16,238 square feet, about 2,120 square feet of first-floor retail space, executive suites, a lobby and multiple on-site photography studios. The building also has four passenger elevators and more than 170 parking spaces.
The team representing the seller included Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Executive Vice Chair & Head of International Capital Markets Alex Foshay, Vice Chairs Ken White, Rob Hannan, Laura Stumm and Michael Moll, Executive Managing Director Bill Bloodgood and Director Alex Bergeson. Newmark Co-President of Global Debt & Structured Finance Jonathan Firestone and Director Henry Cassiday provided debt strategy.
Los Angeles office sales remain steady, prices decrease
Los Angeles’ office investment volume at the end of February clocked in at $334 million, ranking fifth nationally, according to the latest CommercialEdge office report. Assets in the metro traded for $207 per square foot on average, well above the $177 U.S. figure.
Even though sales in the metro are still penciling out, assets changed hands at a discount compared to previous sale prices. Last month, Landrock LP and Pendulum Property Partners acquired a 16-story office building spanning 329,431-square-foot in Glendale, Calif., for $56 million. In 2018, the asset traded for $93.5 million.
A joint venture between Cross Ocean Partners and Palisade Group also bought an office property in the metro at a lower price. The duo purchased 4500 Park Granada, a 222,667-square-foot office building in Calabasas, Calif., for $69.4 million, lower than its $79 million 2021 sale price.
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