Kingsbarn Realty Capital has paid $105 million to acquire the Class A office building 1601 Vine Street in the Hollywood submarket of Los Angeles.
The 115,000-square-foot property – which has five levels of underground parking – was developed by JH Synder Company in 2017. The building is based along the celebrated Hollywood Walk of Fame and is 100% leased as the corporate headquarters for Skims Body Inc., the shapewear and clothing brand co-founded in 2019 by reality television star Kim Kardashian and Swedish entrepreneur Jens Grede.
Kingsbarn stated it originally planned to buy the property in March 2023 but was unable to secure the financing due to the then-unstable nature of the capital markets.
“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,” said Kingsbarn CEO Jeff Pori. “As state and federal workers continue to return to the office, we have also seen a great majority of private companies demand that their workers return to the office as well. Notably, the region’s office construction activity has moderated, with new developments representing less than 1% of existing space. We expect this trend to continue to enhance the health and the overall occupancy within the sector.:
Pori added that his company will offer ownership interests in the building in a Delaware Statutory Trust structure, with private investors purchasing fractional ownership interests in the building through a 1031 exchange.
“The combination of the location at Hollywood and Vine, the magnificent design, the perfect Hollywood tenant, and the long-term lease makes for a winning investment opportunity for California investors,” said Pori. “We are very excited to be able to acquire a property with such a burgeoning company and successful brand as Skims.”
