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A roughly 116K SF office building just steps from the Walk of Fame in Hollywood has sold for $105M to investor Kingsbarn Realty Capital.
The property at 1601 Vine St. is a Class-A office building in Hollywood that is 100% leased, with Skims Body Inc. occupying almost all floors in the building. Skims is a shapewear and clothing company co-founded by Kim Kardashian. It is valued at $4B and just opened its ninth storefront, a roughly 5K SF location in West Hollywood.
“This purchase, along with our ability to secure financing for the building, is further evidence that the office market is recovering, a trend we expect to continue and to even accelerate,” Kingsbarn CEO Jeff Pori said in a statement.
Kingsbarn has purchased several office buildings across Southern California, including an approximately 234K SF office building in Orange County's Mission Viejo, which it bought with Barker Pacific Group last month for $32M.
Kingsbarn had its eye on the building for a while and nearly bought it for $121.8M in 2023, but the sale fell through and Kingsbarn ended up suing its lender, KeyBank, for pulling “the rug out from underneath the transaction,” The Real Deal reported last year.
“Top-tier tenants like Skims are prioritizing best-in-class buildings, and contrarian investors are capitalizing on the opportunity to acquire premier office product below replacement cost with historically attractive cap rates,” Newmark co-Head of Capital Markets Kevin Shannon said.
Shannon and a team at Newmark represented the seller, Snyder Vine LLC.
Newmark co-President of Global Debt and Structured Finance Jonathan Firestone and Director Henry Cassiday provided support on debt strategy and financing considerations throughout the transaction process for 1601 Vine.
The property opened in 2017 and was developed by J.h. Snyder Co. In 2023, the developer sold a 51% stake in the building.
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