Justin Mateen, a co-founder of Tinder, has made an investment in Hollywood by spending $69 million to buy retail space on Hollywood Boulevard next to the storied TCL Chinese Theatre.
Mateen and his brother Tyler purchased the Hollywood Galaxy retail mall and the nearby historic Petersen Building as a wager on the future worth of local real estate.
The acquisition takes place at a time when the majority of institutional investors, including pension funds, have ceased buying real estate in Los Angeles. Due to the loss of tenants that began during the epidemic and other circumstances, the value of many buildings in the area, particularly office skyscrapers, has decreased recently.
But for the Mateens, this is an opportunity. They now own stakes in Hollywood after purchasing prestigious residences in Westchester and Beverly Hills last year.
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Brothers from Los Angeles spent $208 million on a Rodeo Drive office complex. To entice upscale tenants, they intend to almost treble the property’s retail area.
Justin Mateen is well-known for co-founding a well-liked dating app.Through his JAM Fund, Tinderbut also operates as a lone venture capitalist. He and his brother anticipate that the area will recover in the next years, therefore they have a plan to invest in their hometown of Los Angeles when the commercial real estate market is cooling.
He said, “I’ve always been a contrarian investor.” Regardless of the industry—startups, public markets, or real estate—I adopt a long-term perspective and persevere through cycles. We’re doubling down on cities like Los Angeles while others are retreating. Its reappearance seems certain.
In order to attract tenants who are interested in interacting with the millions of tourists that visit the blocks surrounding the intersection of Hollywood Boulevard and Highland Avenue every year, the Mateens intend to renovate the Hollywood property that was sold by Federal Realty Investment Trust.
Nearly 80% of the three-story Hollywood Galaxy shopping center, which was finished in 1990, is leased to businesses like LA Fitness and Target. According to Tyler Mateen, the remaining area might be used by a well-known company like Lego or Nintendo that wishes to develop an immersive, interactive experience for tourists from Hollywood.
According to him, the brothers are searching for tenants that appreciate a large format with visibility and profit from high foot traffic. It might also be a flagship location for a major company like Sephora, Adidas, or Nike.
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The transaction also includes the Petersen Building, which was constructed in 1929 as a Cadillac dealership at Hollywood Boulevard and Orange Drive. A Marshalls department store and a La La Land gift shop currently occupy it.
The Mateens purchased Wilshire Rodeo Plaza, a five-story office complex located at Wilshire Boulevard and Rodeo Drive in Beverly Hills, last year with their partner Pouya Abdi. They are now planning a rooftop restaurant and signing additional retail tenants for the property.
Last year, the Mateens also purchased and are currently renovating the HHLA entertainment center in Westchester, next to Playa Vista. Meow Wolf, an immersive entertainment company, will be one of its new tenants.
According to Tyler Mateen, all three properties are in well-known areas where it is challenging to build new developments. We want to acquire assets that the market cannot ignore and that you cannot recreate.
