Tinder co-founder Justin Mateen has invested in Hollywood with the $69-million purchase of retail property near the legendary TCL Chinese Theatre on Hollywood Boulevard.
In a bet on the future value of local real estate, Mateen and his brother Tyler bought the Hollywood Galaxy shopping center and the historic Petersen Building next door.
The purchase comes at a time when most institutional investors such as pension funds have stopped acquiring property in Los Angeles. Values of many buildings in the region, including office skyscrapers, have fallen in recent years as the loss of tenants that started during the pandemic and other factors have driven down sale prices.
The Mateens, however, see this as an opportunity. They bought prominent properties in Beverly Hills and Westchester last year and are now stakeholders in Hollywood.
Justin Mateen is known for being a co-founder of popular dating app Tinder but is also a solo venture capitalist through his JAM Fund. He and his brother have a strategy to invest in their hometown of Los Angeles during a cooling commercial real estate market because they expect the region to bounce back in the years ahead.
“I’ve always been a contrarian investor,” he said. “Whether it’s startups, public markets or real estate, I take the long view and hold through cycles for forever. While others are pulling back from cities like L.A., we’re doubling down. Its resurgence feels inevitable.”
The Mateens plan to spruce up the Hollywood property sold by Federal Realty Investment Trust and seek tenants who want to interact with the millions of tourists who visit the blocks around the intersection of Hollywood Boulevard and Highland Avenue annually.
The three-story Hollywood Galaxy shopping center, which was completed in 1990, is nearly 80% leased to tenants including Target and LA Fitness. The remaining space could go to a high-profile business such as Nintendo or Lego that wants to create an interactive, immersive attraction for Hollywood visitors, Tyler Mateen said.
The brothers are looking for tenants “who benefit off heavy foot traffic and value a large format with visibility,” he said. That might also be a flagship store for a big brand like Nike, Adidas or Sephora.
The Petersen Building at Hollywood Boulevard and Orange Drive, which is also part of the deal, was built in 1929 as the home of a Cadillac dealership. It’s now occupied by a Marshalls department store and La La Land souvenir shop.
Last year the Mateens and their partner Pouya Abdi bought Wilshire Rodeo Plaza, a five-story office building at Wilshire Boulevard and Rodeo Drive in Beverly Hills. They are in the process of signing new retail tenants for the building and planning a rooftop restaurant.
The Mateens also bought the HHLA entertainment center in Westchester near Playa Vista last year and are in the process of refurbishing it. Among its new tenants will be Meow Wolf, an immersive entertainment firm.
All three properties are in high-profile locations where it is difficult to develop new projects, Tyler Mateen said. “We want to own assets that you can’t build again and that the market can’t ignore.”
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