Newmark Completes $40 Million Sale of Office Property in Santa Monica, California

July 29, 2025 10:00 AM

Newmark announces the company has arranged the $40 million sale of 501 Santa Monica Boulevard, a seven-story office building consisting of 78,509 square feet and a four-level stand-alone parking structure. Newmark Co-Head of Capital Markets Kevin Shannon, Vice Chairmen Rob Hannan, Ken White, Laura Stumm and Michael Moll and Director Alex Beaton represented seller Kilroy Realty Corporation in the transaction.

Buyer Washington Capital was self-represented. Newmark Co-President, Global Debt & Structured Finance Jonathan Firestone and Vice Chairman Blake Thompson provided support on debt strategy and financing considerations throughout the transaction process.

“Opportunities to acquire prime assets located in Downtown Santa Monica are few and far between,” said Shannon. “The seller had owned this asset for almost 30 years, which is not an uncommon hold period for jewel box Santa Monica assets like 501 Santa Monica.”

Hannan added, “501 Santa Monica sits squarely in the wheelhouse of the indomitable allure that will forever define the California dream. The coastal lifestyle, the cultural innovation, the intellectual capital and the cosmopolitan vibe that pulses through the submarket – it’s all right here.”

Situated in the Downtown Santa Monica submarket, the creative seven-story building was 65% leased at the time of the sale and features exposed concrete ceilings and duct work, concrete floors, LEED Gold certification, 13-foot clear ceiling heights and Santa Monica Boulevard-facing signage. The property is located two blocks from the Metro E Line Station and presents convenient access to the I-10 freeway through 4^th Street and to walkable amenities, including Third Street Promenade.

In the first quarter of 2025, the U.S. capital markets showcased encouraging momentum, with commercial real estate debt origination surging 42% year-over-year, driven by increased activity in office, senior housing and hotel sectors, according to Newmark Research. Investment sales also demonstrated resilience, rising 18% year-over-year, with transactions under $100 million comprising 67% of overall transaction volume across property types. Office cap rates at 6.5% and positive returns across all sectors, including a notable recovery in office returns at +0.2%, underscore an increasingly stable and dynamic landscape.

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 March 31, 2025, Newmark generated revenues of over $2.8 billion. As of March 31, 2025, Newmark and its business partners together operated from 165 offices with approximately 8,100 professionals across four continents. To learn more, visit nmrk.com or follow @newmark.

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