Tinder Founder Bets Big On Rodeo Drive Real Estate

Real estate investing can be a driver of wealth for many people who make money in other areas. Following in the footsteps of a wide variety of tech startup founders who have taken the real estate plunge, Justin Mateen, founder of the popular dating app Tinder, has dipped his toe into the real estate market in one of the most prestigious markets in the United States. Justin Mateen and his brother Tyler partnered with their brother-in-law Pouya Abdi on the reimagining of an office and retail property in Beverly Hills, California. 

The Wilshire Rodeo property is located in the Golden Triangle, which is bounded by three major streets: Santa Monica Boulevard, Wilshire Boulevard, and Crescent Drive. The Golden Triangle is renowned for its high-end shopping, luxury hotels, fine dining, and glamorous atmosphere. Although Beverly Hills covers less than six square miles, it is a popular tourist destination, receiving as many as 250,000 visitors during the day. 

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The 300,000-square-foot property spans a full city block and has three six-story buildings on Wilshire Boulevard and a three-story building on Rodeo Drive. Nuveen Real Estate sold the complex for $211 million, making it the most significant sale in the area since 2019. The Real Deal reported that Nuveen, which had owned the property since 2016, started marketing the property in 2019 with an asking price of $350 million. The sale represents a nearly 40% price chop off that ambitious ask. Like many other areas in greater Los Angeles, Beverly Hills has struggled with office vacancies. Data from Commercial Cafe puts the 2023 vacancy rate at over 16%. 

Creating The Next Rodeo Drive Trophy Property

The developers have ambitious plans for the project to rebrand it as One Rodeo. While the buildings already have a prestigious list of tenants that include Merrill Lynch/Bank of America, UBS, William Morris Endeavor and Encore Recordings, the team has plans for significant upgrades. According to an interview with Commercial Property Executive, the new ownership plans to nearly double the amount of retail space and is looking at new uses for the office space, which could include a boutique hotel or a private social club. 

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“We are grateful to be acquiring these buildings at a time when institutional investors feel pressure to reduce their office footprint,” said Justin Mateen. “We look forward to giving the retail spaces the love and attention they deserve as Rodeo Drive retail is fully leased, and our buildings are the only natural continuation.” Justin Mateen is also a venture capital investor through his JAM fund. Some of his investments have included Lyft, Daily Harvest, and Juul. 

Much of the project’s future success will depend on its ability to attract luxury tenants. Rodeo Drive is home to many luxury brands, including Chanel, Louis Vuitton, and Tiffany & Company, and ground-floor retail space is always at a premium. Beverly Hills is also highly protective of its community, which means getting new projects approved can be a challenge. Last year, luxury conglomerate LVMH lost its battle to put a new Cheval Blanc hotel on Rodeo Drive where a former Brooks Brothers store stood.

 Luckily, it sounds like the developers of the new One Rodeo are focused more on internal than external updates to their newly acquired complex. In addition to the coveted address, the project also has one of the most prized amenities in the area: underground parking. Although there hasn't been a major sale in the area in five years, meaning that interest has been slow, this transaction may be a positive sign that things could change. 

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