Newmark Arranges $105 Million Sale of Skims Headquarters Office Building in Hollywood, California
Rhea-AI Summary
Newmark Group (NMRK) has successfully brokered the $105 million sale of 1601 Vine, a Class A office building in Hollywood, Los Angeles. The 115,589-square foot property is fully leased with Skims Body, Inc. as the anchor tenant. The building, originally delivered in 2017 and renovated in 2024, was sold by Snyder Vine, to Kingsbarn Realty Capital.
The property features premium amenities including high-volume ceilings, limestone lobby, floor-to-ceiling windows, executive suites, and on-site photography studios. Located along the Hollywood Walk of Fame with a Walk Score of 98, the building benefits from its prime location in an area that has attracted over $6 billion in investment over the last decade.
Skims has committed to a 15-year lease, demonstrating a strong commitment to maintaining physical workspace for collaboration and innovation in the apparel industry.
Positive
- 100% occupancy with long-term anchor tenant (15-year lease)
- Prime location in area with $6 billion investment over last decade
- Successfully closed significant $105M transaction in challenging office market
- Recently renovated (2024) Class A building
Negative
- High exposure to single tenant (Skims) concentration risk
- Office sector faces broader market challenges despite property quality
News Market Reaction – NMRK
In the trading session that priced this news, NMRK declined 8.74%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Newmark Co-Head of
"Capital is showing renewed conviction in high-quality, 2025-vintage office investments," said Shannon. "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."
Stumm added, "Skims' long-term commitment to 1601 Vine reflects a broader return-to-office trend. For Skims, in-person collaboration is essential—especially in a tactile, design-led industry like apparel. Their 15-year lease signals a strong belief in the long-term value of a physical workspace to foster creativity, culture and innovation."
Delivered in 2017 by JH Snyder Company, the property was extensively renovated in 2024 to deliver a truly world-class headquarters for Skims. The property features high-volume ceilings, a limestone lobby with terrazzo flooring, floor-to-ceiling windows offering panoramic views of
1601 Vine is located along the Hollywood Walk of Fame, at the heart of the entertainment capital of the world.
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the twelve months ended December 31, 2024, Newmark generated revenues of over
Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.
View original content to download multimedia:https://www.prnewswire.com/news-releases/newmark-arranges-105-million-sale-of-skims-headquarters-office-building-in-hollywood-california-302419047.html
SOURCE Newmark Group, Inc.