Tinder Founder & Family Secure Beverly Hills' Biggest Real Estate Deal with Nuveen in Half a Decade

The Mateen Brothers have made a significant purchase, acquiring the mixed-use Wilshire Rodeo Plaza for $211 million from Nuveen. This marks the largest real estate transaction in Beverly Hills, California, since 2019, as reported by The Wall Street Journal. The buyers, including Tinder founder Justin Mateen, his brother Tyler Mateen, and their brother-in-law Pouya Abdi, secured acquisition financing from JP Morgan, with Quantum Capital Partners advising on the debt.

Details of the Acquisition

The Wilshire Rodeo Plaza is a 300,000-square-foot property located at 9536 Wilshire Blvd. and 131 S. Rodeo Drive. It occupies a full city block and comprises three six-story office and retail buildings along Wilshire Boulevard, as well as a three-story office building on Rodeo Drive. The new owners plan to rebrand the property as “One Rodeo,” transforming it into a notable business hub.

Plans for Revitalization

The Mateen Brothers aim to nearly double the existing high-street retail space and invest in enhancements costing in the low tens of millions. Their strategy involves transitioning from short-term to long-term leases, and they are exploring various uses for the office spaces and rooftop, potentially considering a hotel or members-only social club. Despite challenges in the broader Los Angeles market, where office vacancy rates have exceeded 24.4% this year, Beverly Hills has fared slightly better. However, office vacancies in Beverly Hills rose to over 20% in the second quarter, compared to 11.2% in 2019, according to The Wall Street Journal. On the other hand, retail spaces remain robust with an occupancy rate above 90%.

Existing Tenants and Market Potential

The Wilshire Rodeo Plaza currently houses prestigious tenants such as Merrill Lynch/Bank of America, UBS, and entertainment companies like William Morris Endeavor and Encore Recordings. Situated in the Golden Triangle, a well-known tourist destination, the area is famous for its luxury retail, high-end offices, hotels, and fine dining establishments.

Recent Market Activity

In a related transaction late last year, Skanska sold a new 50,148-square-foot office building in Beverly Hills for approximately $71 million. This sale underscores the ongoing demand and high value of office properties in the region, despite challenges in the commercial real estate market.